Label each of the entries in the list as a positive or a normative statement
What will be an ideal response?
• Low-income people pay too much for housing.
The entry that low-income people pay too much for housing is a norma-tive statement.
• The number of U.S. farms has decreased over the past 50 years.
The entry about the number of farms is a positive statement.
• Toyota expands parts production in the United States.
The entry about Toyota expanding parts production is a positive state-ment.
• Imports from China are swamping U.S. department stores.
The entry about imports is a normative statement.
• The population of rural United States is declining.
The entry about the population in rural areas is a positive statement.
Use the following information to work Problems 10 to 12.
Hundreds line up for 5 p.m. Eminem ticket giveaway
Eminem fans lined up all day to get a free ticket to his secret concert at which he will release his new album Relapse (his first in 5 years).
Source: Detroit Free Press, May 18, 2009
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is larger, nominal GDP or real GDP?
A) Both are the same size. B) Nominal GDP is larger. C) Real GDP is larger. D) The answer is ambiguous. E) More information is needed to determine which is larger.
Suppose the consumer's income increases while the prices of the goods remain constant. Then the
A) budget constraint shifts outward parallel to the original budget constraint. B) indifference curves become flatter. C) budget constraint shifts inward parallel to the original budget constraint. D) indifference curves shift outward away from the origin.