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Unformatted text preview: els of soybeans. B) 6 bushels of soybeans. C) 2.5 bushels of soybeans. D) 1.2 barrels of oil. E) 0.8 barrels of oil. 6) Which of the following is a normative statement? A) The higher is the level of taxes, the lower is consumption spending. B) The higher is the level of taxes, the higher are wage demands. C) A reduction in export taxes on petroleum would result in higher wages. D) Tuition fees should be waived for low-income students. E) A free-trade agreement between two countries will result in an increase in trade. Consider the following information describing a closed economy with no government and where aggregate output is demand determined: 1. 2. 3. 4. TABLE 21-1 7) Refer to Table 21-1. The equilibrium level of national income will be A) $ 70. B) $ 93. C) $120. the equilibrium condition is Y = C + I the marginal propensity to save is 0.25 the autonomous part of C is $30 investment is autonomous and is $40 D) $160. E) $280. 8) Suppose that supply for some good increases and that simultaneously the demand for the same good decreases. The result wo...
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This test prep was uploaded on 03/13/2014 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.
- Fall '08