"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of
A) a positive statement.
B) the Federal Reserve taking actions that are not at the margin.
C) opportunity costs.
D) a normative statement.
D
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When comparing the price of a tablet with the price of a laptop, Amanda discovered the tablet was more expensive. This is an example of using money as
A) a store of value. B) a medium of exchange. C) a unit of accounting. D) a standard of deferred payment.
Supply-side theory asserts that high marginal tax rates
A) encourage private saving. B) encourage business investment. C) discourage government expenditures. D) discourage work effort.
Which one of the following will shift the consumption function upward?
a. Higher interest rates. b. Expectations that the economy will grow in the future. c. A decrease in money holdings. d. Higher capacity utilization rates. e. A tax increase.
By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics. B. microeconomics and macroeconomics. C. reservation price and opportunity cost. D. marginal benefit and marginal cost.