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Economics

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1.For each statement (A-D), determine whether it is positive or normative. Briefly explain each answer.

A. The inflation rate in the U.S., based on the rise in consumer prices over the past year, is 1.0%.

B. The minimum wage of $12 per hour in Maine is more fair than the minimum wage of $7.25 per hour in Pennsylvania.

C. During the first four months following the Covid-19 outbreak, 22 million jobs were lost in the U.S.

D. The additional $600 per week, available to individuals collecting unemployment compensation during the pandemic, should be extended through March 2021.

2.You deposit $1,000.00 into a 9% account today. At the end of two years, you will
deposit another $3,000.00, in five years you plan a $4,000.00 purchase. How much is
left in the account one year after the purchase.

3.When there is a positive externality in a free market, there is

4 .Which of the following is most likely to be a marginal change?