Which of the following statements is an example of positive economic analysis?
A. The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.
B. The government should worry less about inflation and more about unemployment.
C. The inflation rate is too high.
D. If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus.
Answer: D
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A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.
When explaining China and India's trade patterns,
A) proximity and GDP explain a significant portion. B) many complex factors determine trading partners. C) patterns are very different for each country. D) exchange rates determine most of the pattern of trade.