Normative statements describe how the world is, while positive statements prescribe how the world should be
a. True
b. False
Indicate whether the statement is true or false
False
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To maximize its profit, in the short run a perfectly competitive firm decides
A) what price to charge for its product. B) what quantity of output to produce. C) whether to exit the market. D) whether to increase the size of its plant. E) how much advertising it should undertake.
To avoid trade restrictions, a U.S. firm moves its final production process to Ireland and then ships the final products to Germany. This is an example of
A) trade deflection. B) trade diversion. C) protectionism. D) rules of origin.
A decrease in spending on new homes will, other things being equal:
A. increase aggregate demand. B. decrease aggregate demand. C. increase aggregate supply. D. decrease aggregate supply.
A specialized worker doesn't spend time switching from one task to another. This source of productivity increase is called:
A. continuity. B. innovation. C. functionality. D. repetition.