Refer to Figure 5.4. Which consumption bundle would maximize the consumer's utility?
A. A
B. B
C. C
D. D
C. C
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An objective analysis of "what is" in the economy is referred to as
A) positive economics. B) normative economics. C) command economics. D) implicit economics.
Refer to Figure 2-2. What is the opportunity cost of one dozen roses?
A) 0.4 dozen orchids B) 2.5 dozen orchids C) 7.25 dozen orchids D) 16 dozen orchids
If the Fed set and achieved a goal of zero unemployment,
A) the inflation rate would increase. B) real GDP would equal potential GDP. C) they would have an easier time achieving the goal of price stability. D) the natural rate of unemployment would be negative.
Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans. This argument is
a. correct because a higher minimum wage will increase total income which will stimulate aggregate demand and employment. b. incorrect because while some people will receive higher wages, others will experience less employment and fewer training opportunities. c. correct because most minimum wage workers are household heads trying to earn enough to support their family. d. incorrect because the government has too big a deficit to pay for the increase in the minimum wage.