Which of the following issues is most unlikely to be addressed by an economist practicing positive economics?
A) the relationship between the minimum wage and the number of unemployed unskilled workers
B) the effect of a minimum wage increase on inner-city crime rates
C) the desirability of a minimum wage increase
D) the consequences of implementing a minimum wage law in China
C
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Which of the following indicates that there is a shortage in the market?
A) Demand is rising. B) Demand is falling. C) Price is rising. D) Price is falling.
If Happy Avocados, a ready-made guacamole manufacturer, purchases an avocado farm, this is an example of ________.
A) outsourcing B) backward integration C) divestiture D) forward integration
When the central bank lowers the reserve requirement on deposits, _____
a. the money supply in an economy increases and interest rates decrease b. both the money supply and interest rates in an economy decrease c. both the money supply and interest rates in an economy increase d. the money supply in an economy decreases and interest rates increase
Most modern monetarists believe that
A. the capitalist system is inherently unstable and unpredictable. B. structural economic changes are major causes of business cycles. C. inflation is explained by too rapid a rate of growth of the nominal money supply, resulting in "too much money chasing too few goods." D. deflations are caused by contagious pessimism among investors.