QUESTION Which of the following statements best describes the study of economics
ID: 1173722 • Letter: Q
Question
QUESTION Which of the following statements best describes the study of economics? Economics studies how O to organize production so that scarcity does not occur O firms make profits O we make choices in the face of scarcity O businesses reach decisions QUESTION 2 Which of the following is a positive statement? O University bookstore prices are too high. O Parking tickets on campus impose an excessive fee. O An increase in college tuition is not fair to students O A recession leads to higher enrollments at universities QUESTION 3 Which of the following statements is a normative statement? O The minimum wage should be increased to $8.50 per hour O Inflation has been at an all time low this year OUnemployment this month has increased by less than 05 percentage point. Pepsi is less expensive than Coke this week QUESTION 4 In the circular flow model, the factor markets are the markets in which government goods and services are provided. investment goods and services are bought and sold. land, labor, capital, and entrepreneurship are bought and sold. consumption goods and services are bought and sold.Explanation / Answer
1 c) we make choices in the face of scarcity
2. d) recession leads to higher enrollment at universities
objective & based; must be able to be tested, proved, disproved
3. Normative statement
a) Minimum wage should be increased to $8.5 per hour
Normative statement - Subjective & value based
4. c) land, labour, capital, and, entrepreneurship are bought & sold
services of the factors of production are sold
The circular flow model shows the services, goods, and, funds among firms, households, foreigners, and, the Government