Which of the following is an example of a normative economic statement?
A. Income tax rates should be lower because that will increase government revenue.
B. Lower income tax rates yield a larger federal government deficit.
C. The federal budget deficit has increased every year for the last twenty years.
D. Lower income tax rates will generate greater income tax revenue to the government.
Answer: A
You might also like to view...
If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of private housing? (Assume a defense budget of $700 billion.)
Which of the following is ALWAYS true for a perfectly competitive firm?
A) P = MR B) P = ATC C) MR = ATC D) P = AVC
Which of the following would shift the aggregate demand curve to the left?
a. An increase in exports. b. An increase in investment. c. An increase in government spending. d. A decrease in government spending.
Suppose a monopsonist currently employs 100 workers at a wage rate of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the marginal labor cost of the 110th worker?
a. $450 per week b. $5,500 per week c. $950 per week d. $9,500 per week e. $49,500 per week