problem 1 - ECON 162-90, 91 Fall 2007 PROBLEM SET NUMBER...

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ECON 162-90, 91 Kenny Christianson Fall 2007 due: September 7 PROBLEM SET NUMBER ONE 1. Determine whether each of the following statements are positive or normative, and if it concerns macroeconomics or microeconomics: a. A decrease in demand has led to a decline in the price of gasoline in recent weeks. b. The price of gasoline is too low to encourage the use of alternative energy sources. c. According to the most recent estimates by the Bureau of Economic Analysis, GDP increased by 3.4% in the second quarter of 2007. d. George W. Bush’s tax cuts have led to increases in consumption spending throughout the economy. e. Federal taxes should be cut even more to avoid the threat of recession and to pressure lawmakers to reduce government spending. . f. If the price of Ben and Jerry’s ice cream increases, then the quantity purchased in New York State each year is likely to decline. 2. This question came in my email: FIND THE MISSING DOLLAR Three men go into a motel, and the man behind the desk said the room is $30, so
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problem 1 - ECON 162-90, 91 Fall 2007 PROBLEM SET NUMBER...

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