If U.S. prices increase relative to the rest of the world, we would expect:
A. net exports to increase.
B. net exports to decrease.
C. net exports to be unaffected.
D. government spending to increase.
B. net exports to decrease.
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When displaced workers require retraining before entering the labor force again, it is the result of ________ unemployment
A) structural B) cyclical C) seasonal D) frictional
To eliminate the inefficiency resulting from an external cost of production, the government can impose a tax on producers that is equal to the
A) MSB. B) MC. C) marginal external cost. D) MSC.
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California B) Florida C) Montana D) He is indifferent between California and Florida. E) He is indifferent between Florida and Montana.
"The U.S. government should not use my tax dollars to subsidize people on welfare"
A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.