Which of the following is a statement of positive economics?
a. Unemployment is a more severe problem in societies than inflation
b. Our current unemployment rate is a serious problem.
c. If the overall unemployment rate is 6 percent, teenage unemployment rates will exceed 12 percent.
d. An unemployment rate of 4 percent would be too low.
c
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A tax on an imported good is a(n)
A) quota. B) export. C) tariff. D) subsidy.
Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for dollar to _____________ and the supply for dollar to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
In the short-run, an increase in the average price level in the economy will cause:
a. demand for a good to increase but total production to decline. b. profits to rise and thus, total production to increase. c. interest rates to fall and thus, total production to decline. d. input costs to fall and thus, total production to rise. e. input costs to fall and thus, total production to decline.
Evaluate the following statement in the context of business-stealing and product-variety externalities: "We have too many student apartments in this town already. Statistics show that vacancy rates average 15 percent during any given semester."