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. The fallacy of composition
b. Loaded terminology
c. A positive economic statement
d. A normative economic statement
c. A positive economic statement
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Often, improvements in technology can:
A. lead to more improvements in technology. B. lead to sustainable rates of growth in income for a country. C. continuously increase the productivity of workers. D. All of these are true.
Changes in the rate charged by electric power companies are subject to government control because
a. the electric power companies are government enterprises. b. consumer ignorance makes it impossible to know what rates are fair. c. the electric power companies are monopolies of a service that is important to buyers. d. cutthroat competition would probably occur if the government did not intervene.
The only variable that can affect a movement along the demand curve is
A) income levels. B) the price of the good itself. C) the number of buyers. D) the number of substitutes.
Which of the following is true?
A) India is the world's largest democracy. B) India began reforming and opening its economy prior to China. C) At the end of the twenty-first century, China will have a larger population than India. D) India has a larger manufacturing sector than China.