Answer the following questions true (T) or false (F)
1. "The distribution of income should be left to the market" is an example of a positive economic statement.
2. Positive analysis is concerned with "what ought to be," while normative analysis is concerned with "what is."
3. "A decrease in the price of tablet computers will decrease the demand for desktop computers." This statement is an example of a normative economic statement.
1. FALSE
2. FALSE
3. FALSE
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In each nation, in the following table, specializes in producing the good for which it has a comparative advantage, then
| COUNTRY | POTATOES | WHEAT |
| United States | 4 | 2 |
| Ireland | 3 | 1 |
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Other things being equal, demand is less elastic
A. the more substitutes a good has. B. the more expensive the good is. C. the longer is the time period for adjustment. D. the smaller the percentage of a total budget that a family spends on a good.
Serena transfers $8,000 from her home safe to her savings account. This transaction will
A. decrease M1 and not change M2. B. increase both M1 and M2. C. not change M1 and decrease M2. D. decrease both M1 and M2.