Which of the following is an example of a positive economic statement?
A. The economy's real output increased at about 3 percent last year and the unemployment rate decreased.
B. A central bank should not print too much money because inflation could result.
C. Congress should stabilize the social security system by raising taxes now.
D. The surplus of farm products should be distributed to the needy.
Answer: A
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The Human Development Index was proposed because
A) people confuse nominal GDP and real GDP. B) nominal GDP and real GDP are subjective measures. C) of the limitations of real GDP as a measure comparing the standard of living in different nations. D) the GDP deflator changes if the base year is changed. E) different nations have different populations.
NAFTA was a controversial issue in the 2008 presidential campaign, particularly in the Democratic primaries
Indicate whether the statement is true or false
The demand curve facing a monopolist
a. is kinked at the market price b. is perfectly elastic c. lies above its marginal revenue curve d. lies below its marginal revenue curve e. is the same as its marginal revenue curve
Evidence from the Great Recession suggests that the crowding out effect:
A. was minimal at that time. B. had a very detrimental effect on private savings. C. can be quite large in times of recession, and is reinforced with recent research from 2008. D. may hold, although the evidence is somewhat contradictory.