Which of the following is a normative economic statement?
a. The Federal budget surplus rose by 10 billion dollars
b. A fall in the unemployment rate was forecast for next month
c. The Federal funds rate was reduced by half a percentage point
d. A trade deficit of 20 billion dollars will harm the economy
d. A trade deficit of 20 billion dollars will harm the economy
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The three most widely followed stock indexes in the United States include all of the following except
A) The NASDAQ. B) the Fortune 500. C) the Dow Jones Industrial Average. D) the S&P 500.
If a firm hires 312 workers it produces 4,522 computers. If it hires 313 workers it produces 4,786 computers. If computers sell at a constant price of $1 and labor is hired at a constant wage rate of $65 per worker
A) the firm should hire and retain the additional worker. B) the marginal factor cost of labor is $65. C) the marginal revenue product of the added worker is $264. D) all of the above.
The income effect describes the:
A. increase in the quantity of labor supplied in response to a higher wage. B. decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income. C. decrease in the quantity of labor supplied in response to a lower wage. D. increase in the quantity of labor supplied due to the greater demand for leisure caused by a higher income.
The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product
a. True b. False Indicate whether the statement is true or false