Which of the following is a normative economic statement?
A. The government should increase spending during times of economic recession.
B. If banks create more money, unemployment will decrease.
C. If the government increases spending, unemployment will fall.
D. If the price of gasoline rises, car pooling will increase.
Answer: A
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One typical cause of poverty is a lack of
a. money b. faith in the market system c. human capital d. desire to work e. all of the above
Under perfect competition
A) information about prices is hard to obtain. B) there is a maximum number of firms that can enter the market. C) if a firm exits the market, price will rise. D) transaction costs are low.
A cartel will break down more easily if
A) there are only a few members. B) industry demand is very stable. C) market prices can be observed easily. D) there are many entrants in the industry.
The Salvation Army is an example of a(n)
a. military organization b. not-for-profit organization c. partnership d. S-corporation e. U.S. government agency