The Statement, The U.s. Should Balance The Budget Over The Business Cycle Is An Example

ECO 221/222: Cumulative1. The statement, The U.S. should balance the budget over the business cycle is an example ofa. Descriptive economics statementb. Marxist ideologyc. Normative Statementd. Positive Statement2. What effect would the following event have upon the price and quantity of Apple iPhones? Event: The suicide rate of iPhone Foxconn assembly workers in China continues to rise due to tough working conditions and causes a backlash against Apple products.a. Price increases, quantity increasesb. Price increases, quantity decreasesc. Price decreases, quantity increasesd. Price decreases, quantity decreases3. You own the movie The Ten Commandments on Blu-Ray DVD. The opportunity cost of watching this DVD for the second time.a. Is zerob. Is one-half the cost of the DVD, as this is the second time you have watched it.c. Is the value of the alternative use of the time you spend watching the DVD.d. Cannot be calculated4. When the increase in the price of one good causes the demand for another good to increase, the goods area. Normalb. Inferiorc. Complimentsd. Substitutes5. An increase in supply caused no change in equilibrium quantity bought and sold. Thus, demand must bea. Elasticb. Perfectly inelasticc. Unitary elasticd. Perfectly elastic6. John and Michelle start a restaurant as a partnership.