Which of the following is an example of a normative statement?
a. If the money supply falls, interest rates will rise.
b. Teenage unemployment would be lower if there were no minimum wage.
c. The quantity of shirts sold increases as the price of shirts decreases.
d. The federal government's total spending should be reduced.
e. If interest rates go up, then construction activity will fall.
D
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Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Indonesia?
A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton
Bank capital is equal to
A) the value of the capital originally invested in the bank by its owners. B) the value of everything the bank owns. C) the difference between the value of the bank's assets and the value of its liabilities. D) the value of the buildings and other physical assets the bank owns.