Normative economic statements
A. violate the ceteris paribus assumption.
B. are easily testable.
C. contain value judgments.
D. are usually irrational.
Answer: C
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A central bank is an institution that
A) pays for government expenditures. B) controls a nation's monetary policy. C) runs a country's stock market. D) determines a nation's fiscal policy.
Which of the following does not exist when an economy is operating at full employment?
a. An unemployment rate of 5 percent or 6 percent b. Seasonal unemployment c. Structural unemployment d. Cyclical unemployment e. Frictional unemployment
Gross domestic product (GDP) rises significantly during which of the following phases of the business cycle?
a. contraction b. expansion c. peak d. trough
The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q d , where Q d is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information we can say that:
A. if pizzas were free, people would consume 800 per week. B. more pizzas will be purchased at a high price than at a low price. C. if the price of pizzas is $6, then 150 will be purchased. D. 50 fewer pizzas will be purchased per week for every $1 increase in price.