Using historical statistics is likely to produce accurate estimates of demand curves since such studies have large amounts of data to draw on.

Refer to Scenario 3. Diminishing marginal returns are incurred when output is increased from:

A) 1 to 2 units of output. B) 2 to 3 units of output. C) 3 to 4 units of output. D) 4 to 5 units of output.

Which of the following is a normative statement?

A) The Gross Domestic Product is the dollar value of all goods and services produced in a country in a year. B) Fiscal policy is determined by the Congress and the president. C) Tax cuts ought to be enacted for the good of the economy. D) Monetary policy is determined by the Federal Reserve System.