When people consume beyond their needs.
Only in rich nations.
In all countries in the world.
Only in poor nations.
Moderation of people’s competitive instincts.
Discovery of large new energy reserves.
Resumption of steady productivity growth.
None of the above.
How to make money
How to operate a business
People making choices because of the problem of scarcity
The government decision-making process.
Individuals or specific markets
The operation of the Federal Reserve
Economy wide effects
The national economy.
Both macroeconomics and microeconomics
Neither macroeconomics nor microeconomics.
Other relevant factors like consumer incomes must be held constant
The gasoline prices must first be adjusted for inflation
The theory is widely accepted, but cannot be accurately tested
Consumers need for gasoline remains the same regardless of price.
Confused association with and causation
Misunderstood the ceteris paribus assumption
Used normative economics to answer a positive question
Built an untestable model.
The income tax system collects a lower percentage of the incomes of the poor
A reduction in the tax rates of the rich makes the tax system more fair
Tax rates ought to be raised to finance health care
All of the above are primarily statements of positive economics.
An unemployment rate of greater than 8 percent is good because prices will fall
An unemployment rate of 7% is a serious problem
If the overall unemployment rate is 7%, black unemployment rates will average 15%
Unemployment is a more severe problem than inflation.
The minimum wage is good because it raises wages for the working poor
The minimum wage is supported by unions
The minimum wage reduces jobs for less skilled workers
The minimum wage encourages firms to substitute capital for labor
Inflation will increase
Workers will gain their rightful share of total income
Profits will fall
Unemployment will rise.