The Corporate Average Fuel Economy (CAFE) standards are designed to improve the average fuel economy of cars and light trucks sold in the U.S. The economic analysis used to develop the CAFE standards was:
A) macroeconomic.
B) positive.
C) normative.
D) none of the above
C
You might also like to view...
The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently
The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips ________. A) increases so it is above $1,200 B) is $1,200 and turnip growers will make normal profit C) decreases so it is below $1,200, and turnip growers will make normal profit D) decreases so it is below $1,200 and the turnip growers make an economic profit
The law of demand states that, ceteris paribus, price and quantity demanded are:
a. directly related. b. inversely related. c. uniformly related. d. horizontally related.
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises. If the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must
a. decrease the money supply, which shifts aggregate demand further right. b. decrease the money supply, which shifts aggregate demand left. c. increase the money supply, which shifts aggregate demand further right. d. increase the money supply, which shifts aggregate demand left.
If you index Social Security benefits for prices rather than wages, this is likely to
A. increase benefits. B. bring about Social Security bankruptcy earlier. C. prevent Social Security bankruptcy altogether. D. reduce benefits.