Normative economics
A) predicts the consequences of alternative actions.
B) answers the question "What ought to be?"
C) answers the question "What is?"
D) is the focus of most modern economic reasoning.
B
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If the current account has a negative balance of $100 and the capital and financial account has a positive balance of $80, there will be ________ in official reserves of ________
A) a decrease; $20 B) an increase; $20 C) an increase; $180 D) a decrease; $180
How does the Fed manage the federal funds rate?
If 100 lumberjacks generate $5,000 in real GDP, the output per laborer would be
a. 0.02 b. 0.05 c. 50 d. 100 e. 5,000
If personal income exceeds national income in a particular year, we can conclude that:
a) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and taxes on production and imports. b) the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits exceeded transfer payments. c) consumption of fixed capital and taxes on production and imports exceeded personal taxes. d) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits.