Question

Joe and Fred are economists. Joe thinks that the wealthiest 10% of the US population should be taxed a rate higher than the rest of society because they can better afford it. Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. In this example, Joe and Freda. disagree about the validity of a positive theory.b. have different normative views about tax policy.c. must both be incorrect because tax policy is never that simple.d. None of the above is correct.

Answer 1

B

Step-by-step explanation:

Normative views are characterized for giving personal opinions in a subjective way about what something should really be. In this case, Joe thinks (subjective opinion) that the wealthiest 10% of the US population "should" be taxed and Fred thinks (subjective opinion) that everyone "should" be taxed.