The decrease in exports from the United States is in part due to the strength of the U.S. dollar relative to foreign currencies. This statement is best described as
A. a marginal statement.
B. a positive statement.
C. a normative statement.
D. an unsubstantiated statement.
Answer: B
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Parity pricing and target pricing differ in that
a. consumers pay a higher than equilibrium price under parity pricing and a lower than equilibrium price under target pricing b. consumers pay a higher than equilibrium price under target pricing and a lower than equilibrium price under parity pricing c. parity pricing generates an excess supply of farm goods while target pricing generates an excess demand d. parity pricing generates an excess demand for farm goods while target pricing generates an excess supply e. under parity pricing, consumer demand determines price while under target pricing, market supply determines the price
When the Federal Reserve conducts an open-market purchase, the money supply _____ and aggregate demand _____
Fill in the blank(s) with correct word
Consider the following:
(i) Suppose Laurent has $60 per week to spend on food and clothing. The price of food is $4 per unit, and the price of clothing is $6 per unit. Sketch Laurent's budget line on the axes provided.
(ii) Laurent applies to the local government for food stamps and is given $40 worth of food stamps per week. On the axes, show how the receipt of food stamps affects Laurent's budget line.
(iii) Suppose that instead of food stamps, Laurent receives $40 in cash per week from a relative. On the axes, show how this gift affects Laurent's budget line.
(iv) Add appropriate indifference curves to the diagram to show that a gift of $40 in cash could make Laurent better off than the receipt of $40 in food stamps.
Which of the following is NOT a normative economic statement?
A) States should reduce the tax on heating fuel oil during the winter. B) The price of gasoline is too high. C) People over the age of 75 should not be allowed to drive cars. D) Teenagers are responsible for most driving fatalities. E) We don't spend enough money on anti-smoking campaigns.