Questions from Macroeconomics

Q: Which of the following is a positive, rather than a normative

Which of the following is a positive, rather than a normative, statement? a. Law X will reduce national income. b. Law X is a good piece of legislation c. Congress ought to pass law X. d. The presiden...

Q: Classify each of the following statements as positive or normative. Explain

Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of money growth will...

Q: Draw and explain a production possibilities frontier for an economy that produces

Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if a disease kills half of the economy’s cows?

Q: Define price ceiling and price floor and give an example of each

Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why?

Q: Kayla can cook dinner in 30 minutes and wash the laundry in

Kayla can cook dinner in 30 minutes and wash the laundry in 20 minutes. Her roommate takes half as long to do each task. How should the roommates allocate the work? a. Kayla should do more of the cook...

Q: The following table describes the production possibilities of two cities in the

The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks Pairs of White Socks per Worker per Hour per Worker per Hour Boston 3 3 Chicag...

Q: Why do economists oppose policies that restrict trade among nations?

Why do economists oppose policies that restrict trade among nations?

Q: Which of the following might lead to an increase in the equilibrium

Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold? a. an increase in the price of peanut better, a complemen...

Q: Using supply-and-demand diagrams show the effect of the

Using supply-and-demand diagrams show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets falls....

Q: Does a change in producers’ technology lead to a movement along the

Does a change in producers’ technology lead to a movement along the supply curve or to a shift in the supply curve? Does a change in price lead to a movement along the supply curve or to a shift in th...