The difference between a positive economic statement and a normative statement is that
a. a positive statement must be true; a normative statement is often not true
b. a normative statement must be true; a positive statement is often not true
c. a positive statement can be verified; a normative statement cannot
d. a normative statements can be verified; a positive statement cannot
e. a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment
C
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A bank is legally required to hold a fraction of its ________ as ________
A) loans; required reserves B) deposits; required reserves C) loans; excess reserves D) deposits; excess reserves
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The government revenue raised by the tax is:
A. $944,444. B. $2.67 million. C. $1.83 million. D. $4.50 million.
An important policy goal in undeveloped labor markets is
a. lowering interest rates and increasing access to money and loans. b. helping workers to become more connected to the labor market and the economy. c. passing laws to protect worker rights and protect worker safety. d. to maintain inflation at a rate comparable to higher-income countries.
A cafeteria is willing to produce 100 bottles of soda when the price is $1 and 150 bottles of soda when the price is $1.30, other things being equal. The price elasticity of supply of soda is
A) 1.53. B) 0.67. C) 0.10. D) 0.50.