All of the following are examples of positive statements EXCEPT:
A. Tax revenues increase as output per person increases.
B. As output per person increases access to consumer goods increases.
C. Growth in an economy generates a budget surplus.
D. High rates of economic growth are undesirable because of the destruction caused to the environment.
Answer: D
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If an individual borrows $100, and pays back $100 after a year to settle his loan, it implies that the rate of interest is:
A) 0 %. B) 100%. C) 1%. D) 10%.
Regional Bank is subject to a 10 percent required-reserve ratio. If this bank received a new checkable deposit of $1,000 . it could make new loans of
a. $100. b. $900. c. $1,000. d. $10,000.
Exhibit 2-10 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumption goods25 23 19 13 0 Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must:
A. increase because the production possibility table shows only the maximum efficiency points. B. increase because of the law of increasing costs. C. decrease because of the law of increasing costs. D. decrease because of the finite nature of the resource base.
There are no fixed costs in the long run.
Answer the following statement true (T) or false (F)