Which of the following is an example of a positive statement?
A) It is too hot to go jogging.
B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
C) When the price of an item increases, people respond by reducing their consumption of the item.
D) The government should balance the budget.
Answer: C) When the price of an item increases, people respond by reducing their consumption of the item.
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The main determinants of investment are the interest rates and expected profit
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
a. Total surplus is the sum of consumer and producer surplus. b. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. c. Deadweight loss is a measure of market inefficiency. d. All of these.