Which of the following statements is a normative?
a. The price of gasoline is rising
b. The price of gasoline is too high
c. Gas prices are expected to fall in the near future
d. Cars can run on gasoline, electricity, or diesel fuel
e. When the price of gasoline rises, drivers buy less gasoline
Answer: b. The price of gasoline is too high
You might also like to view...
A monopolist is the sole supplier of a good or service for which there are no close substitutes
Indicate whether the statement is true or false
Which of the following is one of the arguments for tariffs?
a. encouraging dumping b. protecting against dumping c. managing exchange rates d. managing interest rates
Refer to Figure 8.1. Which graph best represents a total cost function?
A. A
B. B
C. C
D. D
The law of diminishing marginal productivity does not apply in the long run because:
A. no inputs are fixed in the long run. B. some inputs are fixed in the long run. C. all inputs are fixed in the long run. D. some inputs are variable in the long run.