Suppose that a sporting goods store had $800 of golf balls on its shelves at the beginning of 2016 and $1,300 at the end of 2016. The amount of inventory investment included in GDP would be
A) $500. B) $800. C) $1,300. D) $2,100.
A
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The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage:
a. The minimum wage law causes unemployment. b. Unemployment would be lower without a minimum wage law. c. Minimum wage laws benefit some workers and harm others. d. The minimum wage should be more than $7.25 per hour. Which of the consequences above are positive statements and which are normative statements? A) a and b are positive statements, c and d are normative statement. B) Only a is a positive statement, b, c, and d are normative statements. C) a and c are positive statements, b and d are normative statements. D) a, b, and c are positive statements and d is a normative statement.
The median voter theorem states that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle
Indicate whether the statement is true or false
From the passage of the 16th amendment to the U.S. Constitution, income taxes became the primary source of income for the U.S
a. True b. False Indicate whether the statement is true or false
Suppose a decline in U.S. income causes Americans to decrease their demand for all normal goods, including those produced in Europe. How will this change affect the foreign exchange market?
a. A decrease in U.S. income will increase the U.S. demand for foreign exchange, thus increasing the dollar-per-euro exchange rate, making European goods more expensive to U.S. residents. b. A decrease in U.S. income will decrease the U.S. demand for foreign exchange, thus decreasing the dollar-per-euro exchange rate, making European goods cheaper to U.S. residents. c. A decrease in U.S. income will decrease the U.S. supply of foreign exchange, thus increasing the dollar-per-euro exchange rate, making European goods cheaper to U.S. residents. d. A decrease in U.S. income will increase the U.S. supply of foreign exchange, thus increasing the dollar-per-euro exchange rate, making European goods expensive to U.S. residents.