04 Jun Question Multiple Choice Questions (20 questions worth 2 points each)
Question
Multiple Choice Questions (20 questions worth 2 points each)
1. Suppose two economists are debating macroeconomic policy. One economist argues for the implementation of a policy to reduce the overall unemployment rate while the other economist argues the merits of a policy directed at stabilizing the overall price level. This disagreement reflects
a. Positive differences between the two economists’ viewpoints.
b. Normative differences between the two economists’ viewpoints.
2. “Sustained increases in the money supply lead to inflation.” This statement is a
a. Positive statement.
b. Normative statement.
3. A recent study reports that binge drinking by females on college campuses over the past twenty years has increased dramatically. This report most likely utilizes
a. Cross-section data.
b. Time series data.
4. You are given two points on a straight line: (X, Y) = (10, 10) and (-10, -20). You are told this line shifts to the right by 20 units (i.e., the shift is a parallel shift and at any given price consumers now demand 20 more units than they did initially). The equation for the new line is
a. Y = 3/2X – 5
b. Y = 3/2X + 5
c. Y = 2/3X – 35
d. Y = 3/2X – 35
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