Which of the following is an example of a normative statement?
A. The average price of a Whopper Jr. is $1.69.
B. The United States ought to adopt a flat rate personal income tax.
C. A higher percentage of prostitutes incarcerated in Miami test positive for AIDS when compared to registered prostitutes in Nevada.
D. Average growth in real GDP per year was 1.84 percent between 2000 and 2010.
B. The United States ought to adopt a flat rate personal income tax.
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Which of the following is an example of a product that is made available through public provision?
i. local police protection ii. public schools iii. local fire department A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) the unemployment rate is greater than the natural rate of unemployment. B) incomes and profits are falling. C) there is pressure on wages and prices to fall. D) firms are producing above capacity.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Carol and Brad made riskier investments than
either Albert or Diana, they most likely invested in a. common stock b. fixed-yield stocks c. indexed stocks d. corporate bonds e. low-yield dividends
Which of the following does the labor-leisure budget constraint identify?
a. Only the labor-leisure combinations that are possible b. Only the labor-leisure combinations that may be preferable c. Only the hours of leisure that are possible d. Only the income-leisure combinations that are possible