"An increase in the federal minimum wage will provide a living wage for the working poor" is:
a. a statement of positive economics. b. a fallacy of composition.
c. a tautology. d. a statement of normative economics.
d
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Suppose the price of a good rises. When will the resulting substitution effect reduce the quantity demanded of the good?
a. Always. b. Whenever the good is a non-Giffen good. c. Only when the good is normal. d. Only when the good is inferior.
The figure above shows the marginal revenue, marginal cost, and demand curves for an airline offering daily flights between Los Angeles and Toronto
If the airline is regulated using a marginal cost pricing rule ________ flights will be offered each month at a price of ________ per flight. A) 200; $300 B) 200; $100 C) 300; $200 D) 400; $100
Limited liability is a benefit available only to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
If the government wishes to correct the existence of a negative externality, it could
A) grant subsidies to consumers to stimulate demand. B) impose a tax on the producers to reduce supply. C) impose taxes on consumers to stimulate demand. D) grant subsidies to producers to reduce supply.