Which of the following is a positive economic statement?

A) Everyone should live at the same standard of living.
B) If the price of gasoline rises, a smaller quantity of it will be bought.
C) The government should close income tax loopholes.
D) U.S. firms should not be allowed to outsource production of goods and services.

Answer: B

Economics

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When the Fed ________ interest rates, bond prices ________

A) raises; do not change B) raises; rise C) lowers; rise D) lowers; do not change

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Which of the following decreases the supply of popcorn?

A) a decrease in the price of popcorn B) an increase in the price of popcorn C) a technological advance in the production of popcorn D) a decrease in the number of popcorn producers

Economics