Problem 1: The current rate of unemployment of 5% is too high. This is an example of:
a. normative statement:
b. positive statement
c. the circular flow model
d. none of the above.
Problem 2: The primary difference between a change in demand and a change in the quantity demanded is:
a. change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve
b. change is quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve
c. both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions
d. both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions
Problem 3: If people demand more of product A when the price of B falls, then A nad B are
a. not related
b. substitutes
c. complements
d. Inferior