Which of the following is a normative statement?
A) An increase in consumer income will lead to increased sales of beef.
B) A decrease in the rate of unemployment will lead to upward pressure on consumer prices.
C) An increase in the income tax will cause a greater reduction in savings than an increase in the sales tax.
D) An economy with high unemployment can be worse off than an economy with high inflation.
Answer: D
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A bracelet making company has three employees, and together they produce 10 bracelets an hour. When a fourth worker joins them, the output for the company is now 11 bracelets an hour. Which of the following is true?
A. Diminishing marginal product started with the fourth worker. B. Average product has increased. C. Total product is increasing. D. None of these is true.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, they will pick Q equal to a. 0 b. 10 c. 25 d. 70
When employers discriminate, they: a. may believe that they have sound economic reasons for doing so. b. may pay the price in lost earnings and productivity
c. may subject themselves to civil action. d. may be characterized by all of the above.
Summarize the historical growth record of the United States over the past 50 years in terms of real GDP growth and in terms of real GDP per capita growth. What three qualifications should be made about these growth rates?
Please provide the best answer for the statement.