Which of the following is a normative statement?
A. A decrease in price leads to an increase in quantity consumed.
B. Incomes grow more rapidly in high-tax states than low-tax states.
C. People would be better off if government expenditures were higher.
D. People will buy less butter at $1.50 per pound than they will at $1 per pound.
Answer: C
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According to your authors, market clearing
A) is planned by all buyers. B) is planned by all sellers. C) is planned by all buyers and sellers. D) is planned by economists and government agencies. E) is an unintended consequence of people pursuing their own plans.
Refer to the data. The price elasticity of demand is relatively elastic:
Answer the question on the basis of the following demand schedule:
A. in the $6-$4 price range.
B. over the entire $6-$1 price range.
C. in the $3-$1 price range.
D. in the $6-$5 price range only.