Review 1
Which of the following is a normative statement: A. The deduction for state taxes cost the federal government 100 billion per year. B. Tax preparers in North Carolina pay state taxes which are above the national average. C. 22 states use a lottery to raise state taxes. D. Congress is considering the presidents tax plan to increase taxes which is a fair plan.
Answer: Congress is considering the presidents tax plan to increase taxes which is a fair plan
Which of the following is a statement of positive economics: A. I hope unemployment comes down soon. B. President X's Way of dealing with unemployment is better than President Y's. C. I think everyone should sacrifice to reduce the deficit. D. If taxes are reduced, unemployment will drop.
Answer: If taxes are reduced, unemployment will drop.
A direct relationship exist when A. There is no association between two variables. B. One variable increases and there is no changes in the other variable. C. One variable increases and the other increases. D. One variable increases in the other variable decreases.
Answer: One variable increases and the other increases.
Microeconomics is concerned with: A. Some specific market in the economic system. B. The entire economic system. C. Reducing national unemployment and inflation rates. D. What causes changes in the overall level of economic activity.
Answer: Some specific market in the economic system.
Which of the following is included in the study of macroeconomics: A. Salaries of college professors. B. Computer prices. C. Unemployment in the nation. D. Silver prices.
Answer: Unemployment in the nation
A direct relationship is express graphically as a: A. Positively sloped line or curve. B. Negatively sloped slow line or curve. C. Horizontal line. D. Vertical line.
Answer: Vertical line.
When an inverse relationship is graphed, the resulting line or curve is: A. Horizontal. B. vertical. C. upward sloping. D. downward sloping.
Answer: downward sloping.
