Normative economics is
a. an event is explained according to the laws of economics.
b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone.
c. the study of foreign countries.
d. the study of our banking system.
Answer: b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone.
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. The amount of the tax paid by the buyers would be greater than shown in the figure
A) only if the demand was more elastic. B) only if the demand was more inelastic. C) only if the supply was more elastic. D) if either the demand was more inelastic or the supply more elastic.
You are studying with a friend and your friend says, "Private goods are excludable and nonrival, while public goods are nonexcludable and rival." Do you agree?
What will be an ideal response?
A leftward shift of the money supply ________
A) may come about from an increase in the quantity of money supplied by the Federal Reserve B) may come about from an increase in the price level C) leads to a decrease in interest rates ceteris paribus D) all of the above E) none of the above
If the equation of exchange is MV = PY the Y represents:
A. nominal GDP. B. economic growth. C. potential output. D. real GDP.