The price of $4 in the graph above represents
A. a price floor.
B. a price ceiling.
C. either a price floor or a price ceiling.
D. neither a price floor nor a price ceiling.
B. a price ceiling.
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Which of the following is an example of a positive economic statement?
a. The economy's real output increased at about 3 percent last year and the unemployment rate decreased. b. A central bank should not print too much money because inflation could result. c. Congress should stabilize the social security system by raising taxes now. d. The government farm products surplus should be distributed to the needy.
Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth
a. True b. False Indicate whether the statement is true or false
The second largest category, by relative importance, in the CPI calculation is
a. housing. b. apparel. c. transportation. d. medical care.
The real-nominal principle can be stated as:
A. production generates income. B. only final goods and services should be counted in GDP. C. what matters to people is the purchasing power of money or income. D. only the manufacture of real goods is production.