Which of the following is NOT normative economic statement?
A) The minimum wage should be eliminated so unemployment can be reduced.
B) Increases in the minimum wage cause increases in unemployment.
C) The inflation rate should fall to increase individuals' well being.
D) Taxes on cigarettes should be increased to reduce smoking.
B
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The measure of production that values production using current prices is called
A) nominal GDP. B) value-added GDP. C) real GDP. D) underground GDP.
Suppose the Fed injects $50 billion of new money by buying U.S. treasury bonds from the public. If the required reserve ratio is 10 percent, banks convert all excess reserves into loans, and the public hold all their money in their checking accounts rather than in cash, then by how much will the money supply ultimately increase due to this injection?
a. $5 billion b. $50 billion c. $500 billion d. $950 billion
Which of the following might cause a depreciation of the U.S. dollar versus the Japanese yen?
A. A recession in the United States. B. A recession in Japan. C. A greater demand for U.S. coal by Japan. D. More Japanese visitors to Hawaii.
If there is no change in demand that will cause a change in the price, then the supply for the good is
A. inelastic. B. perfectly elastic. C. perfectly inelastic. D. perfectly unit elastic.