"If the price of wine increases, the quantity purchased will increase." Is this a positive or a normative economic statement? Explain your answer
Since it is a testable proposition, it is a positive economic statement. The statement need not be true, only testable.
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From 1922 to 1929, the total value of the stock market:
A. more than tripled. B. decreased by nearly 50 percent. C. decreased by nearly 90 percent. D. stayed the same.
Ethan purchases a new house for $170,000 . Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y = C + I + G?
a. C b. I c. G d. None of the above are correct.
A movement along the consumption function can be caused by a
A. decrease in taxes. B. well performing stock market. C. newly found $100,000 inheritance. D. check from sold mutual funds.
Discuss the effects on the current price of a stock from each of the following:a) An increase in the growth rate of the dividend;b) A decrease in the risk-free interest rate;c) An increase in the equity-risk premium; and finallyd) A decrease in the annual dividend.
What will be an ideal response?