Which of the following statements is a normative as opposed to a positive economic statement?
A. Consumer spending helps to create jobs.
B. Labor unions should be allowed to organize in every country.
C. When a government prints too much money, inflation tends to rise.
D. If the price of cars goes up, people buy fewer cars.
Answer: B
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A perfectly competitive industry achieves allocative efficiency because
A) goods and services are produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it. B) firms carry production surpluses. C) it produces where market price equals marginal production cost. D) goods and services are produced at the lowest possible cost.
Every time new firms enter a monopolistic competitive market, the firms already in the market find their
a. price rising to make up for lost customers b. cost curves shifting upward, reflecting increased inefficiency c. profits increasing because total revenues increase with more firms in the market d. demand curves becoming more inelastic as only loyal customers remain e. demand curves shifting inward to the left
Suppose the government of a small open economy reduces its spending, so that national saving increases. The result is
A. a decrease in the real interest rate. B. an increase in the real interest rate. C. an increase in investment. D. an increase in net exports.
Which of the following characteristics are the most important for building trust among virtual team members?