The President's statement that "to encourage economic growth, taxes should be cut"
A) would be an example of a normative statement.
B) would be an example of a positive statement.
C) would be an example of a microeconomic statement.
D) would be a statement of mercantilist economic philosophy.
A
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The Industrial Revolution was centered in Great Britain, and the British
(a) tried to achieve a technological monopoly. (b) were willing to freely share industrial technology with their colonies but no other nations. (c) believed in free trade and the sale and export of technology to any nation that wanted to pay for it. (d) were willing to share their technology with other nations but not their colonies because they wished the colonies to specialize in the production of agriculture and raw materials for export to England.
If firms were forced to take into account the full social costs of production, then
A) output would decrease but pollution levels would probably remain at the same levels. B) output would be unaffected but pollution levels would come down. C) output and pollution levels would decrease. D) output could be increased and pollution levels would decrease.
Each of the following is a determinant of demand except a. tastes
b. production technology. c. expectations. d. the prices of related goods.
If the output level is such that the aggregate expenditure line lies below the 45-degree line, which of the following is true?
a. Aggregate expenditure is greater than output, so inventories will increase and output will be raised. b. Aggregate expenditure is greater than output, so inventories will decrease and output will be increased. c. Aggregate expenditure is less than output, so inventories will decrease and output will be raised. d. Aggregate expenditure is less than output, so inventories will increase and output will be lowered. e. Aggregate expenditure is greater than output, so inventories will increase and output will be lowered.