Author Question: The wealth effect of a change in the price level refers to the fact that wealthier individuals tend ... (Read 73 times)

Metfan725 · **on:** Jun 30, 2018

The wealth effect of a change in the price level refers to the fact that wealthier individuals tend to spend more on foreign goods.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following contains only normative statements?
a. The birth rate is reduced as economies urbanize, but that also leads to a decreased average age of developing countries' populations.
b. An increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.
c. A decrease in the price of butter will increase the amount of butter purchased, but that would be bad because it would increase Americans' cholesterol levels.
d. None of the above contain only normative statements.