Answered: 1. Which of the following is NOT a…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter1: The Role And Method Of Economics

Section: Chapter Questions

Problem 8P

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1. Which of the following is NOT a normative statement?

Select one:

a. higher interest rates should lead to increased savings

b. inflation is more harmful to Ghana than unemployment

c. if its minimum wage falls, Japan will be a better place

d. the benefits to the economy of improved equity are less than the costs of reduced efficiency

Which of the following is not necessarily an outcome of international trade?

Select one:

a. goods being obtained at lower opportunity cost

b. people specialize in activities in which they have a comparative advantage

c. all individuals within trading countries benefit

d. more efficient resource use

If a 8 percent increase in income results in a 10 percent increase in the quantity demanded of lattes, what is the income elasticity of demand for lattes, and what type of good is lattes?

Select one:

a. negative, and therefore lattes are a normal good

b. negative, and therefore lattes are an inferior good

c. positive, and therefore lattes are an inferior good

d. positive, and therefore lattes are a normal good

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