Which of the following is false?
a. A positive statement must be testable but need not be true
b. A hypothesis is a normative statement.
c. Normative analysis involves subjective, non-testable statements.
d. The majority of disagreements in economics stem from normative issues.
b
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Macroeconomic models are
A) never wrong. B) accurate descriptions of the economy. C) simple abstractions of reality. D) consistent with all economic data.
How does value of marginal product (VMP) of labor determine the number of workers a competitive firm will hire?
Briefly explain one function of financial instruments that can make them very different from money.
What will be an ideal response?
Labor hoarding occurs when
A. because of hiring and firing costs, firms retain workers in a recession that they would otherwise lay off. B. involuntary unemployment exceeds voluntary unemployment. C. the unemployment rate exceeds the natural rate of unemployment. D. firms keep good workers so other firms can't hire them.