Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices.
b. The economy grew at an annual rate of 5 percent during the first quarter of this year.
c. If two automobile companies merge, it is likely that the price of automobiles will rise.
d. An increase in international trade benefits some workers but hurts others.
e. The minimum wage should be increased so that low income workers can afford to keep up with the cost of living.
e
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Research in history and economic history shows that before 1880,
(a) there was some government intervention in the private sector of the American economy. (b) there was substantial federal regulation of private business organization but little influence in the economy otherwise. (c) the regulation and participation that existed were usually of a background nature and were not concerned with the details of day-to-day private business. (d) laissez faire was the rule so far as the federal government was concerned.
Which of the following is true?
A) Even when they are economically free, high-income countries have been unable to achieve high growth rates. B) Even when low-income countries adopt institutions and policies supportive of economic freedom, they are unable to achieve high growth rates. C) When low-income countries adopt institutions and policies supportive of economic freedom, they are able to achieve high growth rates. D) Even when they are economically free, low-income countries have been unable to achieve high growth rates.
In the extended classical model, an unexpected decrease in aggregate demand would cause unanticipated inflation to be ________ and cyclical unemployment to be ________.
A. negative; positive B. positive; positive C. negative; negative D. positive; negative
Refer to the above data. If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be:
a. 1 unit. b. 2 units. c. 3 units. d. 4 units.