Which of the following is a normative economics statement?
a. An increase in the minimum wage will reduce teenage employment.
b. Increasing the minimum wage will result in more votes for progressive candidates.
c. Raising the minimum wage would greatly increase labor costs in certain industries.
d. Raising the minimum wage is a poor idea because living wage laws are better.
d
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The president of a company is told that the fixed costs next year will be higher than anticipated. Even so he has told his operations managers that this should not affect their production levels. Comment on this statement
What will be an ideal response?
A buyer's consumer surplus on a unit of a good is its value to that buyer minus what the buyer actually pays for it
a. True b. False
Does voluntary exchange create wealth?
a. No, exchange merely shuffles the existing supply of goods and services among people. b. No, if one person gains, the other party must lose an equal amount. c. Uncertain, it will increase wealth if it creates more goods and services; otherwise it exerts no impact on the wealth of people. d. Yes, exchange makes it possible for the trading partners to gain more value from the existing supply of goods and it also makes larger output levels possible.
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Why does the marginal cost of producing crude oil increase as the volume of crude oil increases?
A. The different costs reflect the higher costs of extracting oil at different sources. B. The different costs reflect the different costs of transporting oil to the United States. C. The different costs reflect the higher taxes that the government imposes on higher production of oil. D. The different costs reflect the different exchange rates needed to buy the oil from different countries.