If consumers can easily switch to a close substitute when the price of a good increases, demand for that good is likely to be:

If the Mexican government wants to keep the peso overvalued against the dollar, it will need to:

A) sell both dollars and pesos. B) buy both dollars and pesos. C) sell pesos and buy dollars. D) buy pesos and sell dollars.

Which of the following statements correctly differentiates between positive and normative economics?

A) Positive economics is descriptive, whereas normative economics is advisory. B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do. C) Positive economics is based on judgments, whereas normative economics is not. D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.