Which of the following is a question answered with normative economic reasoning?
A) If the college provided less financial aid for out-of-state students, would more in-state students benefit?
B) If the college offers free textbooks for students, will more students read their textbooks?
C) If the college increased its enrollment requirements, would class size decline?
D) Should the college increase tuition to fund its athletic programs?
Question 2
Refer to the scenario above. Which of the following statements will be true in steady state?
A) Economy A will have a lower capital stock and a greater GDP than economy B.
B) Economy A will have a greater capital stock and a lower GDP than economy B.
C) Economy A will have a greater capital stock and GDP than economy B.
D) Economy A will have a lower capital stock and GDP than economy B.
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