Which of the following represents a normative statement?
a. A decrease in price leads to an increase in quantity demanded
b. The study of economics is more important than the study of history.
c. People will buy less butter at $1.50 per pound then they will at $1.00 per pound.
d. As an economy develops, the nation's birth rate tends to fall.
b
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When the ownership of the different stages of production of a commodity lies with different individuals, it becomes difficult to take decisions on capacity expansion because of all the following reasons, EXCEPT:
a. differences in attitudes toward risk. b. differences in motivation. c. different degrees of risk exposure. d. different abilities to hedge themselves.
If the interest rate is 4%, in which of the following cases is the future value the largest?
a. An initial value of $1,000 deposited for 5 years. b. An initial value of $950 deposited for 6 years. c. An initial value of $900 deposited for 7 years. d. An initial value of $850 deposited for 8 years.