Which of the following statements about positive economic analysis is true?
A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.
B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis.
C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
D) Unlike positive economic analysis, normative economic analysis can be tested.
Answer: A
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Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
A) It can only achieve this with an advance in technology. B) It will have to give up production and consumption of some other good. C) It can only achieve this with an increase in resource supplies. D) It can increase output without giving up another good.
The National Monetary Commission
A) was created by Congress to study the setting up of a central bank. B) authorizes open market operations. C) oversees nationally chartered banks. D) chooses Federal Reserve district bank presidents.
Which of the following correctly describes the calculation of the unemployment rate?
A. Unemployment rate = employed ÷ unemployed × 100 B. Unemployment rate = unemployed ÷ civilian labor force × 100 C. Unemployment rate = unemployed ÷ employed × 100 D. Unemployment rate = unemployed ÷ adult population × 100
What is the price of coffee when the demand is 15 pounds per year?
a. $2 per pound
b. $3 per pound
c. $4 per pound
d. $5 per pound