A normative economic statement
a. is a hypothesis used to test economic theory
b. is a statement of fact
c. is a statement of what ought to be, not what is
d. indicates what will occur if certain assumptions are true
e. enables economists to test hypotheses
C
You might also like to view...
In the classical macroeconomic model, a decrease in the real wage would cause
a. a decrease in the marginal product of labor and an increase in the quantity demanded for labor. b. an increase in the marginal product of labor and an increase in the quantity demanded for labor. c. no change in the quantity demanded for labor. d. an increase in both the supply of and demand for labor.
Suppose the Christmas trees market is perfectly competitive. An owner is currently earning a profit of $1,000, the cost of producing and selling an additional Christmas tree is $25, the current market price is $20. The owner
A) should sell more trees. B) should not sell more trees. C) should advertise in the market to promote his sales. D) is not maximizing his profits.
Based on the quantity equation, if M = 150, V = 4, and Y = 300, then P =
a. 8. b. 0.5. c. 2. d. 3.
Assume that the quantity of CDs is measured on the horizontal axis, while the quantity of movie tickets is measured on the vertical axis. If available income decreases, then
A. the vertical intercept of the budget line decreases, while the horizontal intercept remains unchanged. B. the horizontal intercept of the budget line decreases, while the vertical intercept remains unchanged. C. the budget line will shift inward. D. the budget line will shift outward.