Normative economics seeks to understand behavior, but not make judgments.
Answer the following statement true (T) or false (F)
False
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A condition in a market where there is no upward or downward pressure on price is called
A) a shortage. B) a surplus. C) market equilibrium. D) All of the above are possible correct answers.
If the cross elasticity of demand coefficient for potato chips and pretzels equals 1.5: a. potato chips and pretzels must both be inferior goods. b. potato chips and pretzels must both be normal goods. c. potato chips and pretzels must be substitutes
d. potato chips and pretzels must be complements.
By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again
Indicate whether the statement is true or false
Price controls would ordinarily be used to increase rather than decrease prices of depletable resources.
Answer the following statement true (T) or false (F)