Which of the following is a statement of positive economics?

a.

The income tax reduces after-tax incomes of the rich.

A reduction in tax rates makes the after-tax distribution of income fairer.

Tax rates ought to be reduced so that people will work more.

All of the above are statements of positive economics.

In economics, which of the following is considered part of "land"?

a.

A 500 acre forest.

bauxite deposits.

underground pools of crude oil.

All of the above are included in the category, "land."

Assuming that the demand for a good has decreased and the supply of a good has increased by the same amount, then:

a.

The change in price is determinate but the change in quantity is indeterminate.

The change in quantity is determinate but the change in price is indeterminate.

Neither the change in price nor the change in quantity will be indeterminate.

Both the change in price and the change in quantity will be indeterminate.

The function of an entrepreneur is to:

a.

bear business risks.

organize the other factors of production.

innovate.

do all of the above.

A decrease in consumer incomes will:

a.

decrease the demand for an inferior good.

decrease the supply of an inferior good.

increase the demand for a normal good.

do none of the above

If the price of tennis rackets were to increase, we would expect:

a.

the supply of tennis balls to decrease.

the supply of tennis balls to increase, leading to a movement along the demand curve for tennis balls.

the demand for tennis balls to increase.

the demand for tennis balls to decrease