Economists view positive statements as
a. affirmative, justifying existing economic policy.
b. optimistic, putting the best possible interpretation on things.
c. descriptive, making a claim about how the world is.
d. prescriptive, making a claim about how the world ought to be.
c
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National debt decreases in a given year when a country has
A) a budget deficit. B) a balanced budget. C) a budget supplement. D) a budget surplus. E) no discretionary fiscal policy.
During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?
A) The demand for pork would decrease and the equilibrium price of pork would decrease. B) The demand for pork would decrease and the equilibrium price of pork would increase. C) The demand for pork would increase because consumers could afford to buy more chicken and pork. D) The supply of pork would increase and the equilibrium price of pork would decrease.
If your stockbroker gives you bad advice and you lose your investment:
A. your investment would only be covered if the stockbroker was employed by a bank. B. these losses would be covered under FDIC insurance. C. the government will not reimburse you for the loss; you are not protected from bad advice by your stockbroker. D. the government will reimburse you similar to reimbursing depositors if a bank fails.
The larger the share of a good in a consumer's budget, holding everything else constant, the
A) more unit elastic is a consumer's demand. B) more price inelastic is a consumer's demand. C) more price elastic is a consumer's demand. D) more vertical is a consumer's demand curve.