Which one of the following is an example of a normative statement?
A. Hotels in Colorado are more expensive than are hotels in Hawaii.
B. The hotel vacancy rate in Hawaii will increase as airfares to Hawaii increase.
C. A vacation in Colorado is better than a vacation in Hawaii.
D. The busiest tourist month in Colorado is July.
Answer: C
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Which of the following policy measures forced credit-rating agencies to provide reports to the SEC when their employees go to work for a company that has been rated by them in the last twelve months?
A) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 B) Sarbanes-Oxley Act of 2002 C) Global Legal Settlement of 2002 D) Gramm-Leach-Bliley Act of 1999 E) Riegle-Neal Act of 1994
A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant
a. True b. False Indicate whether the statement is true or false
Rent seeking
a. often entails large opportunity costs. b. prevents waste of resources. c. often promotes fairness in distribution of resources. d. cannot occur in a planned economy.
Suppose you were to hear a politician defend the minimum wage on the grounds than the low-wage workers would spend more of their extra income that wealthier employers, would and therefore the effect would be positive, you would know this person to be relying on the ________ argument.
A. elasticity B. macroeconomic C. work effort D. consumer and producer surplus