1. Which of the following is a positive economic? statement?
A. Unemployment is a more serious problem than inflation.
B. No individual should live in poverty.
C. The rate of unemployment of young? African-Americans exceeds that of white Americans.
D. Economic considerations are less relevant than ethical issues in deciding national policy.
2. Suppose the U.S. government encouraged consumers to trade in their old automobiles for more? efficient, new models by paying up to? $5,000 for the old automobiles. These consumers would be exemplifying the economic idea that
A. people are rational.
B. people respond to economic incentives.
C. optimal decisions are made at the margin.
D. equity is more important than efficiency.