Which of the following is true?
i. A rational choice is made on the margin.
ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
iii. Economists try to understand how the economic world works by testing normative statements.
A) only ii B) only i C) only iii D) i and ii E) i and iii
B
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Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, what is the marginal cost of 5th red rubber ball?
A) 4 B) 5 C) 8 D) 20 E) none of the above
Supply-side economists argue that less government spending will
a. result in less economic stabilization b. result in more crowding out c. lower both rates of unemployment and inflation d. lower the interest rate and lower private investment e. lower the interest rate and raise private investment
Briefly explain why the law of one price does not hold closely for most products that are traded internationally.
What will be an ideal response?
We would expect that a rise in labor supply will have a proportionately larger effect on the market wage rate when
A) the demand for labor is unitary elastic. B) the demand for labor is inelastic. C) the supply for labor is elastic. D) the demand for labor is elastic.