How does empirical analysis relate to positive statements?
a. Positive statements are testable; empirical analysis is contestable.
b. Both empirical analysis and positive statements collect data.
c. Positive statements prove the validity of empirical analysis.
d. Empirical analysis tests positive statements by collecting data.
d. Empirical analysis tests positive statements by collecting data.
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The graph shown best represents which of the following?
A. A tax on sellers
B. A subsidy to sellers
C. A price floor.
D. A subsidy to buyers
Which of the following is an example of an externality?
A. Drug abuse affecting David’s health B. Sara taking a break from work C. A transaction between two parties, affecting them alone D. Tom’s smoking affecting his roommate’s health
Paul and David work for the same company and have the same job title, education, work experience, and are equally skilled at what they do. Paul works the night shift and is paid $60,000 a year, while David works a regular day shift and is paid $55,000 a year. Which of the following is the best explanation for why Paul earns more than David?
a. Paul has more human capital than David. b. David has more human capital than Paul. c. Paul has received a compensating differential. d. Aside from pay, the night shift is more desirable than the day shift.
The newest evidence on Head Start suggests that ________ participants are more likely to earn higher incomes as young adults than equally-situated non-participants.
A. white B. Asian C. African-American D. all