Which of the following raises the price of a used car and increases the equilibrium quantity sold?
A) a new 8 percent federal excise tax placed on all new car purchases
B) an increase in wages for used car salespeople
C) a special rebate program on all new cars
D) None of the above answers is correct
Question 2
Which of the following statements is true?
A) Positive economics deals with issues that are subjective.
B) Normative statements depend on personal preferences.
C) Positive economics recommends what people ought to do.
D) Normative economic statements can be confirmed or disproven.
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