How do economists view positive statements?
a. affirmative, justifying existing economic policy
b. optimistic, putting the best possible interpretation on things
c. descriptive, making a claim about how the world is
d. prescriptive, making a claim about how the world ought to be
Ans: c. descriptive, making a claim about how the world is
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Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) decrease in oil prices. B) increase in consumption spending. C) decrease in investment spending. D) increase in net exports.
Refer to Table 10-2. Holding prices constant, when Keira's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?
A) Her total utility and the marginal utility of the last sandwich consumed increase but marginal utility of the last cup of soup consumed decreases. B) Her total utility and the marginal utility of the last cup of soup consumed increase but marginal utility of the last sandwich consumed decreases. C) Her total utility decreases but the marginal utilities of the last cup of soup and the last sandwich consumed increase. D) Her total utility, the marginal utility of the last cup of soup consumed, and the marginal utility of the last sandwich consumed all increase. E) Her total utility increases but the marginal utilities of the last cup of soup and the last sandwich consumed decrease.
Which of the following program(s) examples is (are) in-kind assistance to fight poverty in the United States?
a. Medicaid b. Negative income tax c. Supplemental security income (SSI) d. Aid to Families with Dependent Children (AFDC) e. Welfare checks
The average total cost of producing electronic calculators in a factory is $20 at the current output level of 100 units per week. If fixed cost is $1,000 per week:
A. total cost is $3,000. B. average variable cost is $10. C. average fixed cost is $20. D. variable cost is $2,000.