Which of the following is a normative statement?
A) The Gross Domestic Product is the dollar value of all goods and services produced in a country in a year.
B) Fiscal policy is determined by the Congress and the president.
C) Tax cuts ought to be enacted for the good of the economy.
D) Monetary policy is determined by the Federal Reserve System.
Answer: C
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Refer to the following graph.
This set of cost curves is:
A. wrong because the total cost and variable cost curves are reversed. B. wrong because the total cost and variable cost curves are actually the average total cost and average variable cost curves. C. wrong because the fixed cost curve is drawn incorrectly. D. correct.
If depreciation is less than gross investment, then net investment is
A) positive. B) negative. C) zero. D) This situation could never occur because it is impossible for depreciation to be less than gross investment.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. M2 money multiplier to remain the same. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to rise.
Mika borrows $100,000 to start up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:
A. the implicit cost of $100,000. B. the implicit cost of $5,000. C. the explicit cost of $105,000. D. the explicit cost of $5,000.