Which of the statements below is primarily normative in nature?
A. The inequality of income that exists in the United States is partly caused by an unequal distribution of wealth.
B. There is an unequal distribution of income in the United States.
C. The distribution of income is more unequal in the United States than it is in Japan.
D. The distribution of income in the United States should be more equal than it is.
Answer: D
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In the above figure, the curve labeled MCL is the marginal cost of labor curve and is used in a
A) competitive situation in which individual firms cannot influence the wage rate they must pay. B) competitive situation in which skill differentials create a difference between what a firm must pay labor versus the wage at which households are willing to supply labor. C) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is less than the marginal cost of labor. D) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is greater than the marginal cost of labor.
The ________ demonstrates the roles played by households and firms in the market system
A) theory of comparative advantage B) business cycle C) circular flow model D) production possibilities frontier
Refer to Exhibit 2-6. Which graph depicts a technological improvement in the production of good X only?
 ANSWER 7.png)
If the purchasing power of the dollar is falling, then it follows that:
A. The price index is falling B. The price index is rising C. Nominal incomes are falling D. Interest rates are rising