Which of the following is a normative economic statement?
a. The unemployment rate for the United States is currently 5.4 percent.
b. The inflation rate in the United States is too high.
c. An increase in the price of a good will reduce the amount purchased.
d. Higher profits in an industry will attract more entrepreneurs into the industry.
b
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Scarcity forces people to
A) cheat and steal. B) consume as much as they can as quickly as they can. C) choose among available alternatives. D) live at a low standard of living. E) be unwilling to help others.
An increase in the prison population would tend to cause, other things the same, a decrease in ________
A) federal disabilities benefits B) the use of temporary workers C) the college premium D) the natural rate of unemployment
"Strike first" or initiating a war may be the appropriate strategy for a nation if
a. it has a national security advantage which it believes will be eroded in time b. it already faces a national security disadvantage vis-à-vis an adversary c. it wants to shift its production possibilities curve to the right d. it wants to shift its production possibilities curve to the left e. it wants to shift its adversary's production possibilities to the right
When an effluent fee is put in place,
a. all polluting sources will abate the same number of units, regardless of cost differences b. cost savings can be realized c. an efficient solution is assured d. each polluting source reduces effluents to zero to avoid the fee