Which of the following is a positive rather than a normative question?
A. Should trade unions be allowed to lobby Congress?
B. Should the United States allow unlimited immigration?
C. Should the "Highly Qualified Teacher" provision of No Child Left Behind be eliminated?
D. Should there be a minimum wage?
E. What effect does increasing welfare assistance by 20% have on female labor supply?
Answer: E
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If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below.CountryRubber BandsPaper ClipsA4080B1040In country A the opportunity cost of 1 paper clip is
A. 1/2 rubber band. B. 2 rubber bands. C. 1/4 rubber band. D. 1 rubber band.
What is human capital, and how does it affect U.S. productivity?
What will be an ideal response?
One school of thought that emphasizes the role that taxes play in an economy's supply of output is known as
A) classical economics. B) tax-and-spend economics. C) demand-pull economics. D) supply-side economics.
To derive the external balance relationship under high capital mobility and floating exchange rates, an increase in government spending must be followed by
A) an increase in money stock to restore the balance of payments equilibrium. B) a decrease in money stock to restore the balance of payments equilibrium. C) a depreciation of the currency to restore the balance of payment equilibrium. D) a decrease in investment spending to restore the balance of payments equilibrium.