The headline in the local paper today is "College tuition next fall rise by 6 percent." This statement is an example of
A) a normative statement.
B) a positive statement.
C) an invalid statement.
D) ceteris paribus.
B
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By using the market basket approach:
A. it allows us to see how cost of living is affected by the changing prices of different goods relative to how much of each good you buy. B. we get a moreaccurate picture of the changing cost of living than by simply averaging the changing prices of goods listed in the market basket. C. we get a clearer picture of the changing cost of living than by averaging the changing prices of all goods and services produced. D. All of these statements are true.
“Peak pricing” can often improve economic efficiency.
Answer the following statement true (T) or false (F)
Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?
a. The Condorcet Paradox predicts that the $100 budget will win even though fewer people prefer that budget. b. The median voter theorem predicts that the winning budget will be $125, the median of the preferences of the two types of voters. c. Arrow's impossibility theorem says that the winning budget cannot be determined in this election since there is no unanimity. d. None of the above.
If for some reason Americans desired to increase their purchases of foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall. b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise. c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall. d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.