Which of the following is an example of a normative statement?
a. Higher unemployment rates are common among young people
b. Young people should learn how to prepare their own taxes.
c. Auto insurance rates are generally lower for younger
d. Persons under the age of 30 watch more movies than those over the age of 30.
b
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Capital stock will increase as long as
A) gross investment exceeds depreciation. B) capital deepening decreases. C) net investment equals zero. D) depreciation exceeds real GDP.
Marginal revenue is the change in:
a. total profit brought about by selling one more unit of output. b. price brought about by selling one more unit of output. c. total revenue brought about by selling one more unit of output. d. output brought about by a $1 change in product price. e. average revenue brought about by selling one more unit of output.
In the absence of environmental policy, the number of tires produced in a competitive market is
Use thefollowing information for any or all of Questions 16 through 18. Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions: MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q a. 20 million c. 4 million b. 25 million d. none of the above
Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that
A. the equilibrium price will increase. B. the equilibrium quantity will increase. C. the equilibrium price will increase, and the equilibrium quantity will increase. D. both the equilibrium price and the equilibrium quantity will increase.