1. Which of the following is an example of a normative statement?

A.The rate of unemployment is 9%.

B.A high rate of economic growth is good for the country.

C.Millions of Americans lack health insurance.

D.The federal government spends half of its budget on national defense.

If total revenue goes up when price increases, the price elasticity of demand is said to be:

price inelastic.

price unit elastic.

price elastic.

normal.

If a nationis operating at a point inside its production possibilities frontier, it:

has fullemployment.

has unemployed orinefficientlyemployed resources

mustcutoutputofonegoodto increaseproduction ofanother.

willbeunabletoexperience economicgrowth.

1. If the price of chocolate-covered peanuts decreases from $1.15 to $0.90, the quantity demanded does not change, and other things are unchanged, the absolute value of the price elasticity of demand, using the midpoint method, is:

A.0.9.

B.1.

C.0.5.

D.0.