Which of the following is an example of a normative, as opposed to positive, statement?
a. Gasoline prices ought to be lower than they are now.
b. The federal government should raise taxes on wealthy people.
c. The social security system is a good system and it deserves to be preserved as it is.
d. All of the above are normative statements.
d
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If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a
A) superdeflation. B) hyperdeflation. C) disinflation. D) hyperinflation.
The labor demand curve slopes
a. upward to illustrate that the more productive the worker, the higher the real wage the employer is willing to pay that worker b. upward to illustrate that the higher the wage rate, the fewer workers are demanded c. upward or downward in direct proportion to the rate of inflation d. downward to illustrate that the lower the real wage, the more workers employers are willing to hire e. downward to illustrate that the availability of workers is directly proportional to the real wage
Efficiency wages, minimum-wage laws, and unions all keep wages
a. below the equilibrium level, causing a shortage of labor. b. below the equilibrium level, causing a surplus of labor. c. above the equilibrium level, causing a shortage of labor. d. above the equilibrium level, causing a surplus of labor.
At a price of $4 per unit, Gadgets Inc. is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 gadgets. If the price were to increase to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets (use the midpoint formula)?
A. 1.2 B. 0.833 C. 1.0 D. 0.80