Which of the following is a normative economics statement?
a. An increase in the minimum wage will reduce teenage employment.
b. Increasing the minimum wage will result in more votes for progressive candidates.
c. Raising the minimum wage would greatly increase labor costs in certain industries.
d. Raising the minimum wage is a poor idea because living wage laws are better.
d
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Suppose the Federal Reserve decides to increase the proportion of deposits that banks must hold from 1% to 3%. Which monetary policy tool is it using?
a) Reserve requirements b) Discount rate c) Open market operations d) Infrastructure spending
John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 6188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. Prefer buying in the US b. Prefer buying in Mexico c. Be indifferent about where he buys his television d. None of the above