When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

A) making a normative statement.
B) making a positive statement.
C) testing an economic model.
D) facing the standard of living tradeoff.

B

Economics

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A Social Security system in which payroll taxes that workers and their employers pay in go directly to retirees and other beneficiaries is known as

A) a pay-as-you-go system. B) an individual-account system. C) a primary-deficit system. D) a social-lockbox system.

Economics

Which of the following creates a positive externality?

a. a paper mill polluting a river b. a stock market crash c. a neighbor that beautifies her lawn d. taxes and subsidies e. the greenhouse effect

Economics