The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement.
A. normative; normative
B. normative; positive
C. positive; normative
D. positive; positive
Answer: D
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Suppose that the following table represents all of the possible investments in the economy. If the nominal interest rate is six percent, what is the total amount of investment in the economy? (Note: The Returns are for one period later.)
Investment Cost Returns A $100 $105 B 300 321 C 200 216 D 50 55 E 400 416
Which of the following is an important factor in the success of agrarian land reform policies?
(a) the introduction of sharecropping. (b) the introduction of tenant farming. (c) farmer training programs. (d) the introduction of more capital intensive methods.
Industrial unions offer membership to all workers in a specific industry
Indicate whether the statement is true or false
In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will
a. lower price to expand revenue possibilities. b. reduce output and raise price. c. maintain the current price if profit is still positive. d. increase plant size to lower marginal cost. e. decrease plant size to lower marginal cost.