Which of the following statements or questions exemplify positive economics? (check all that apply)
a. The unemployment rate in Mexico is higher than in the United States.
b. Should the unemployment rate in the United States be lower than in Mexico?
c. When the government increases the minimum wage the unemployment rate will rise.
d. The government ought to increase the minimum wage so that incomes rise.
e. As the flight ticket prices fall, airlines experience a sharp increase in revenue.
a. The unemployment rate in Mexico is higher than in the United States.
c. When the government increases the minimum wage the unemployment rate will rise.
e. As the flight ticket prices fall, airlines experience a sharp increase in revenue.
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The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then
A) wealth distribution would be more equal. B) wealth distribution would be unchanged. C) wealth distribution would be more unequal. D) the Lorenz curve would shift rightward.
If a firm buys its labor in a competitive market, then a short-run increase in the price of the firm's output will cause the firm to
A) offer a higher wage. B) hire fewer workers. C) hire more workers. D) offer a lower wage.
Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. The national income of this nation will be:
a. $236 billion. b. $249 billion. c. $251 billion. d. $279 billion. e. $290 billion.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related borrowing/lending in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate remains the same and net nonreserve-related borrowing/lending balance becomes more positive (or less negative). b. The real risk-free interest rate falls and net nonreserve-related borrowing/lending balance becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve-related borrowing/lending balance becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve-related borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.