The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of:
A. A normative economic statement
B. A positive economic statement
C. Microeconomic analysis
D. Rational self-interest
Answer: B
You might also like to view...
Newsgroup Markets
Visit one of the following newsgroups: (Newsgroups provide lists of messages on a particular topic. Google provides a searchable interface for these newsgroups.)
- rec.antiques.marketplace
- rec.audio.marketplace
- rec.music.makers.marketplace
Questions:
- Do participants in such lists receive gains from trade? How?
- Does the existence of internet newsgroups such as these allow some individuals to gain from trade that might not otherwise occur? Explain.
Country A's overall balance in the balance of payments equals the:
a. Current account minus the capital account. b. Reserves account minus the current account. c. Reserves account plus the financial account plus the current account. d. Reserves account plus the financial/capital account. e. Zero when central banks do not intervene in the foreign exchange market.
Which of the following statements is correct?
A. If demand decreases and supply increases, equilibrium price will rise. B. If demand increases and supply decreases, equilibrium price will fall. C. If supply increases and demand decreases, equilibrium price will fall. D. If supply decreases and demand remains constant, equilibrium price will fall.
Explain how menu costs affect the slope of the short-run aggregate supply curve
What will be an ideal response?