Which of the following is a normative statement?
A. The government should spend more to help the poor.
B. A tax cut will cause higher inflation.
C. Tariffs on imported cars result in higher prices for domestic auto consumers.
D. Reducing the budget deficit will also reduce the balance of trade deficit.
Answer: A
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Explain how the aggregate demand curve is derived
What will be an ideal response?
Due to diminishing marginal returns, the ultimate source of economic growth in the United States from 1949 to 2010 has been
A) capital. B) labor. C) total factor productivity. D) Capital, labor, and total factor productivity are all subject to diminishing marginal returns, and therefore are all equally responsible for economic growth.
Many kindergarten teachers have advanced education degrees, yet they have lower average earnings than other individuals with similar education levels. A potential explanation for the differences in earnings is that kindergarten teachers
a. have more pleasant working conditions. b. have less pleasant working conditions. c. work longer hours. d. must pass certification tests.
Since the future holds more uncertainty over longer periods of time, lenders generally want a:
A. constant interest rate for loans over the period of the loan. B. higher interest rate for loans over a longer period. C. lower interest rate for loans over a longer period. D. higher interest rate for loans over a shorter period.