Which of the following is not an example of a positive, as opposed to normative, statement?
a. Higher gasoline prices will reduce gasoline consumption.
b. Equality is more important than efficiency.
c. Trade restrictions lower our standard of living.
d. If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money.
b
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Which of the following is an example of a normative statement?
A. The American Recovery and Reinvestment Act should not have been passed during the Great Recession. B. Unemployment soared to 25 percent during the Great Depression. C. An increase in alcohol taxes will reduce the number of drunk driving accidents. D. Great Britain has fewer hospital beds per capita today than they did in 1948.
Contrary to popular belief, the richest families in the United States became slightly poorer in recent years
a. True b. False Indicate whether the statement is true or false
Dan Heath is the majority owner of Plain Truth Advertising. He hires Shirley Downs as the chief executive officer (CEO). In terms of an economic model, Mr. Heath is the ________ and Ms. Downs is the ________.
A. agent; principal. B. agent; intermediary. C. principal; agent. D. principal; intermediary.
The principal objective of the Federal Reserve System is to
A. circulate coins and paper Federal Reserve Notes. B. subsidize the income of member banks. C. help stabilize the economy through monetary policy. D. make profits to remit to the Treasury Department.