Answer the following questions true (T) or false (F)
1. "The distribution of income should be determined by the government" is an example of a normative economic statement.
2. Policies based on normative economic ideas tend to increase economic efficiency and improve equity.
3. "An increase in the price of oranges will increase the demand for grapefruits." This statement is an example of a normative economic statement.
1. TRUE
2. FALSE
3. FALSE
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Real GDP is the dollar value of all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
In 1952, there were _____ school districts in the United States
a. fewer than 15,000 b. around 30,000 c. around 45,000 d. more than 60,000
According to the principle of comparative advantage, a nation should specialize in economic activities
A) that incur lower opportunity costs. B) that incur higher opportunity costs. C) for which it has an absolute advantage. D) for which it has no absolute advantage.
National saving is the sum of _____ and _____. In a closed economy it is equal to _____ in equilibrium
Fill in the blank(s) with correct word