Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. which of the following explanations would be most consistent with this observation?
a. Consumers have experienced an increase in income and beef-production technology has improved.
b. The price of chicken has risen and the price of steak sauce has fallen.
c. New medical evidence has been released that indicates a negative correlation between a person's beef consumption and his or her longevity.
c. The demand curve for beef must be positively sloped.
Answer: C
Macroeconomics
- Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good for which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
- Economists generally support
- A good that is produce abroad and sold domestically is called
- When a country has a comparative advantage in producing a certain good,
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- The difference between production possibilities frontiers that are bowed out and those that are straight lines is that
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- Economists regard events from the past as
- When a relevant variable that is not named on either axis changes,
- When two variables have a negative correlation,
- The slope of a line is calculated by the
- The slope of a straight line is calculated by
- You know an economist has crossed the line from scientist to policy adviser when he or she
- Which of the following is an example of a normative statement?
- Which of these statements is a normative statement (as opposed to a positive statement)?
- Which of the following is an example of a positive statement?
- Economists consider normative statements to be
- A normative statement describes how the world
- Which is the best statement about the roles of economists?