Which one of the following is a normative economic statement?
A. The unemployment rate fell for the fourth straight month, reflecting the effects from stronger economic growth in the second quarter
B. The worsening balance of trade must be corrected if this nation is to remain competitive in the world economy
C. Consumer prices are rising at a faster rate than in past months, indicating a renewal of inflationary pressures on the economy
D. To help balance the Federal budget, Congress increased the tax on gasoline to its highest level in the past ten years
Answer: B
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A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter
a. True b. False
When a hurricane destroys a significant portion of an apple crop:
A. apple prices decline, and quantity sold rises. B. apple prices rise, and quantity sold falls. C. apple prices rise, and quantity sold rises. D. apple prices decline, and quantity sold falls.
Describe the rationale behind supply and demand analysis for public goods
Please provide the best answer for the statement.
An increase in supply will occur when
A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.