Question

2)The average price of regular unleaded gasoline in Fairfax County should be about $2.15. This statement is an example of:

(a)A normative statement

(b)A positive statement

(c)A statement of the fallacy of composition

(d)A deductive statement

(3)Which of the following statements is false? The post hoc fallacy is:

(a)A flawed statement

(b)The confusion of the whole and the parts of the whole

(c)A very common analytical error

(d)All of the above

(4)Which of the following statements about the a priori method of analysis that is used by microeconomists is true?

(a)The analysis goes from the concrete to the abstract

(b)The analysis is based on empirical evidence

(c)The analysis is based on logical inference

(d)All of the above

(5)Suppose blueberry muffins are an inferior good, an increase in consumer income, other things being equal, would:

(a)Increase the demand for muffins

(b)Decrease the quantity demanded of muffins

(c)Decrease the demand for muffins

(d)Increase the quantity demanded of muffins

(6)An improvement in technology given ceteris paribus will cause the supply curve of car manufacturers to shift to the ___________ in a market.

(a)Left

(b)Right and then left

(c)Right

(d)None of the above

(7)Given ceteris paribus, the removal of a 3 percent subsidy on the interest rate paid by celery farmers will have what effect on the market equilibrium of celery?

(a)Price will increase, and quantity will increase

(b)Price will decrease, and quantity will decrease

(c)Price will increase, and quantity will decrease

(d)Price and quantity will stay the same

(8)Which of the following statements about a government imposed tax on potato growers in Idaho given ceteris paribus is true?

(a)It is a non-price factor that would cause the demand curve for Idaho potato growers to shift inwardly to the left

(b)It is a non-price factor that would cause the supply curve for Idaho potato growers to shift outwardly to the right

(c)It would cause the price of Idaho potatoes to increase relative to its pre-tax price

(d)It would cause the price of Idaho potatoes to remain unchanged relative to its pre-tax price

(9)A revolutionary technology used in the production of brown rice lowers its cost of production given ceteris paribus. As a result, the market changes to a new equilibrium because of a(an):

(a)An upward movement along the demand curve for brown rice

(b)Rightward shift in the supply curve for brown rice

(c)Rightward shift in the demand curve for brown rice

(d)Shortage of brown rice

Answer 1

2. (a) A normative statement

Explanation: A normative statement does not state a fact. Rather, it states an opinion or a value judgment.