Question

Which of the following is a normative economics question?
A. Should the government fund free school lunches for all children?
B. How many workers are unemployed in January 2019?
C. Does an increase in the supply of gasoline lead to a price decrease?
D. Who is the Chairman of the Board of the Federal Reserve Bank?

In the past, many Red Sox games have been sold out. Suppose this year there is a further increase in the number of fans who want to attend Red Sox games. What can we expect to happen to equilibrium price of Red Sox tickets?
A. price of a ticket will rise
B. price of a ticket will fall
C. price of a ticket will stay the same
D. price of a ticket may increase or decrease

What is measured on the axes of the production possibilities curve graph?
A. total production costs in dollars
B. 2 types of final goods
C. the prices of goods sold
D. 2 types of resources

Answer 1

1. A normative economic question is "Should the government fund free school lunches for all children? . Hence,option(A) is correct.

2. Increase in the number of fans who want to attend red sock games. Because of this demand for red sock games increases, Therefore, Demand curve for Red sock games would shift rightward. As a result ,equilibrium price of a ticket will rise. Hence,option(A) is correct.

3. 2 types of final goods are measured on the axes of the production possibilities curve graph. Hence,option(B) is correct.