Which of the following statements is a normative as opposed to a positive economic statement?
A) Consumer spending generates more jobs.
B) If the price of gasoline goes up, people buy less.
C) Labor unions should be allowed to organize in every industry.
D) Government intervention in markets is common in many countries.
C
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Which of the following will cause a reduction in the amount of money individuals wish to hold?
A) an increase in income B) an increase in the interest rate C) an increase in the price level D) all of the above
Because minimum wage is a price floor
A) it will maximize consumer surplus. B) it will create a deadweight loss. C) it will be set below the market equilibrium price. D) it will increase the number of jobs available in the labor market.
Which of the following will be included as a unilateral transfer in the balance of payments account of a country?
a. Transportation costs involved in traveling from a foreign country to the domestic country b. A foreign worker in the domestic country sending money to his home country c. Compensation earned by foreign workers in the domestic country d. Royalties paid to residents working in a foreign country e. Income paid on foreign-owned investments in the domestic country
In the long run, the Fed can change the inflation rate but not the unemployment rate
a. True b. False