In Europe, birth rates have fallen as the stork population decreased. This is likely
a. a normative statement
b. confusing correlation and causation.
c. the fallacy of composition.
d. all of the above
b
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A firm's demand for labor is downward sloping because of
A) diminishing marginal productivity of labor. B) diminishing marginal utility. C) price pressure. D) workers' increased willingness to work at a higher wage.
Which of the following conditions is most essential if a firm is going to earn long-run economic profits?
a. an inelastic market demand for the product b. a small number of firms, even though competitors are free to enter the industry c. a differentiated product d. restrictions that limit the entry of potential competitors into the industry
The U.S. government counts both cash income and in-kind transfers when determining the poverty rate.
Answer the following statement true (T) or false (F)
"Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have risen at an annual rate of 10 percent during the last six months." Which of the following policies would be most appropriate under these circumstances?
A. an increase in both government spending and taxes B. an increase in taxes C. a reduction in taxes D. an increase in government spending