Which of the following is NOT normative economic statement?
A. Taxes on cigarettes should be increased to reduce smoking.
B. The inflation rate should fall to increase individuals' well being.
C. Increases in the minimum wage cause increases in unemployment.
D. The minimum wage should be eliminated so unemployment can be reduced.
Answer: C
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There is no opportunity cost of obtaining
A) a free good. B) a scarce good. C) any good a person acquires, as long as they value it highly enough. D) any good a person acquires, as long a they think it is worth the effort.
A minimum wage set above the equilibrium wage will
A) create a shortage of labor. B) create a surplus of labor. C) have no effect because the equilibrium level of employment is not affected by a minimum wage above the equilibrium wage. D) create a lower wage rate for skilled workers than for unskilled workers.
Economic analysis indicates that environmental quality
a. is something that people value, and therefore are willing to pay for. b. should always be regulated by the government. c. is something people should be forced to pay for no matter what their income levels. d. is not important to most people.
_________ are publicly traded securities that have the benefit of not having to comply with some of the same registration requirements that other publicly traded securities do.
a. Bonds b. Stocks c. Municipal bonds d. Letters of credit e. None of these