Question

1) An increase in the minimum wage is good for workers. This statement is

a) obviously true

b) obviously false

c) a positive statement (or positive analysis)

d) a normative statement (or normative analysis)

I CHOSE "D" - DO YOU AGREE?

2) Which historical event was most responsible for the creation of macroeconomics?

a) The American Revolution

b) The Great Inflation

c) The Great Depression

d) World War II

I CHOSE "C" - DO YOU AGREE?

3) The Great Depression affected virtually all countries around the world except one. Which country managed to escape the Great Depression?

a) The United States

b) The Soviet Union

c) Germany

d) Jamaica

I CHOSE "B" - DO YOU AGREE?

4) Ceteris paribus is an analytical assumption that means that when you consider a relationship...

a) you always must remember that what goes around comes around

b) you must remember that the ones with the money make the rules

c) you assume that all other factors and variables are constant and do not change

d) you assume that all other variables are changing at the same time

I CHOSE "C" - DO YOU AGREE?

5) In a competitive market, whenever demand exceeds supply, a _________ will result.

a) Surplus

b) Shortage

c) Equilibrium

d) Time Displacement

I CHOSE "B" - DO YOU AGREE?

6) Satiation occurs when people have everything that they need or want. Many economists have been fascinated with satiation. Which of the following is correct regarding satiation?

a) We have reached satiation many times

b) Capitalists economists have claimed that it is possible, but socialists have never made this mistake

c) There has been no indication that we have ever reached satiation, or are about to reach satiation

d) We have never reached satiation, but it is clear that we are nearing it

I CHOSE "C"- DO YOU AGREE?

Answer 1

1) I agree it is a normative statement.

2) The great depression was the most important reason why macroeconomics was created.  

3) The Soviet Union wasn't affected because it was not economically connected to the world.

4) Everything else being equal = ceteris paribus

5) More demand less supply = Shortage.

6) Your answer is correct. We are facing scarcity and due to growing demand, we will keep facing it. There is no saturation in the demand so no satiation.

All of your answers are correct.