Which of the following is a normative statement?
A. A decrease in price leads to an increase in quantity consumed.
B. Incomes grow more rapidly in high-tax states than low-tax states.
C. People would be better off if government expenditures were higher.
D. People will buy less butter at $1.50 per pound than they will at $1 per pound.
Answer: C
You might also like to view...
Within certain limits, the reserve requirement for check able deposits are established by
a. Congress. b. the U.S. president. c. each Federal Reserve Bank. d. the Board of Governors.
Exhibit 3-6 Milk market Price per Quart Quantity Demanded (Quarts per week) Quantity Supplied (Quarts per week) 0.70 20 180 0.60 60 140 0.50 100 100 0.40 140 60 0.30 180 20 In Exhibit 3-6, which of the following is true about the milk market? ?
A. At price 0.60 there is an excess demand of milk. B. At price 0.40 there is an excess supply of milk. C. At price 0.70 there is an excess supply of milk. D. At price 0.50 there is an excess demand of milk.
If there is currently a shortage of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate. B) The dollar will depreciate. C) There will be an increase in the demand for dollars. D) There will be an increase in the supply of dollars.
Which of the following statements about the importance of trade to the U.S. economy is true?
A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product. B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports. C) The United States is the second largest exporter in the world. D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.