In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?
a. "Price supports are important because America should preserve the small family farm."
b. "Without price supports, the price of wheat and corn will fall by over twenty percent."
c. "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms."
d. "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States."
a
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An Oldsmobile dealer may turn to a __________ like GMAC for loans in purchasing vehicles for his inventory
A) investment bank B) broker-dealer C) bootstrap financing company D) captive finance company
If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:
a. is a non-essential. b. has a highly elastic demand. c. has many good substitutes. d. has a highly inelastic demand. e. has a unit elastic demand curve.
If a poor country is going to grow rapidly and achieve a high level of per capita income, which of the following is most important?
a. abundant natural resources
b. substantial aid from rich countries
c. central planning and a high level of government expenditures
d. institutions and policies that encourage productive activities
A debit item in the balance of payments is
A. any foreign aid received by the country. B. an item that creates a monetary claim on a foreigner. C. an item for which the country must pay. D. any exported item.