Does the decision to make a blockbuster movie mean that some other more desirable activities get fewer resources than they deserve? Is your answer positive or normative? Explain your answer
What will be an ideal response?
Making a blockbuster movie means that some other activities get fewer resources. But whether "more desirable" activities get fewer resources than they "deserve" is a normative answer for two reasons. First the question of whether an activity is more desirable or less desirable depends on the person's judgment and values. Second the determination of whether an activity gets fewer resources than it deserves also involves the normative decision about the quantity of resources an activity deserves. So the answer to the question of whether making a blockbuster movie means that other more desirable activities get fewer resources than they deserve is a normative answer that depends on the student's values.
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The NAIRU:
A. can change over time. B. is difficult to measure. C. occurs at the economy's level of potential output. D. All of these statements are true.
If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output?
A. $5 billion B. $125 billion C. $500 billion D. $12,500 billion