An example of a normative statement is:
A) The rate of unemployment is 4 percent.
B) A high rate of economic growth is good for the country.
C) The federal government spends half of its budget on national defense.
D) People with health insurance tend to spend more on health care than those who are uninsured.
Ans: B) A high rate of economic growth is good for the country.
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The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. There is a marginal external ________ of ________ per ton
A) benefit; $200 B) benefit; $100 C) cost; $200 D) cost; $100
Refer to Figure 18-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
A) an increase in U.S. real income. B) an economic expansion in the United States. C) speculators expect the dollar to depreciate in value in the near future. D) a decrease in Japanese interest rates.