If John says the price of gasoline is too high and Paul says prices are determined by the action of the marketplace, then John has made a(n):
a. positive economic statement, and Paul has made a normative economic statement
b. positive economic statement, and Paul has made a positive economic statement
c. normative economic statement, and Paul has made a normative economic statement
d. normative economic statement, and Paul has made a positive economic statement
e. improper economic statement, and Paul has made a proper economic statement
D
You might also like to view...
For a given domestic and foreign price level, a decrease in the nominal exchange rate ________ the real exchange rate.
A. decreases B. increases C. offsets any change in D. may either increase or decrease
Banks face the problem of ________ in loan markets because bad credit risks are the ones most likely to seek bank loans
A) adverse selection B) moral hazard C) moral suasion D) intentional fraud
The CEO of British Petroleum decided that the company needed to add a goal to its worldwide operations. That goal was
A) to be a good corporate citizen. B) to focus on drilling and not exploration. C) to focus on exploration and not drilling. D) to enter the Chinese market.
While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on
a. government contracts to promote research and publications. b. demand-and-supply analysis. c. the economic theory of John Maynard Keynes. d. consumer protection laws and antitrust legislation.