Which of the following is an example of a normative, as opposed to positive, statement?
a. Universal health care would be good for U.S. citizens.
b. An increase in the cigarette tax would cause a decrease in the number of smokers.
c. A decrease in the minimum wage would decrease unemployment.
d. A law requiring the federal government to balance its budget would increase economic growth.
a
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In the long run, a perfectly competitive firm can make an economic profit because its marginal cost equals its average total cost
Indicate whether the statement is true or false
Figure 7-7
In Figure 7-7 at 100 units, AVC equals
A. 8. B. 800. C. 100. D. 1,000.
Isoquants that are downward-sloping straight lines imply that the inputs
A) are perfect substitutes. B) are imperfect substitutes. C) cannot be used together. D) must be used together in varying proportions.
The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:
A. quantity demanded. B. quantity supplied. C. demand. D. supply.