Brinley says that "gas prices are rising because there aren't enough oil refineries." Katie argues that "gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that:
A. Brinley's statement is positive; Katie's statement is normative.
B. Brinley's statement is normative; Katie's statement is positive.
C. Both statements are positive.
D. Both statements are normative.
Answer: C
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Which of the following always lowers the equilibrium price?
A) an increase in both demand and supply B) a decrease in both demand and supply C) an increase in demand combined with a decrease in supply D) a decrease in demand combined with an increase in supply
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. Joe will put forth low effort, and Sarah will put forth high effort. B. both Joe and Sarah put forth low effort. C. both Joe and Sarah put forth high effort. D. Joe will put forth high effort, and Sarah will put forth low effort.
Using the saving-investment approach, which of the following describes an equilibrium condition of GDP?
A. I = X ? IM B. S = X ? IM C. I = S + (X ? IM) D. S = I + (X ? IM)
Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D0 to D1, shown in the following diagram?
a) A decrease in investment tax credits. b) A technological advancement that increases productivity. c) A decrease in business taxes. d) The lifting of business regulations.