Which of the following is an example of a positive, as opposed to normative, statement?
a. Inflation is more harmful to the economy than unemployment is.
b. If welfare payments increase, the world will be a better place.
c. Prices rise when the government prints too much money.
d. When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
c
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An important type of information asymmetry is:
A. adverse selection. B. ethical constraint. C. advantage imbalance. D. information hazard.
Which statement is true?
A. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for free trade. B. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for protection. C. Dollars are used for all international transactions. D. None of these statements are true.
What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending. b. Decrease tax rates and decrease government spending. c. Decrease tax rates and increase government spending. d. Increase tax rates and decrease government spending.
Jennifer moved her law offices from an office she was renting downtown to the carriage house she has at the back of her property. How will her costs change?
a. explicit and implicit costs rise b. explicit costs rise and implicit costs fall c. explicit and implicit costs rise d. explicit costs fall and implicit costs rise