An editorial in a newspaper calling for the government to abolish the minimum wage because it takes advantage of consumers is an example of a(n)
a. positive economic statement.
b. pure economic statement.
c. normative economic statement.
d. abstract economic statement.
c. normative economic statement.
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Lemon laws are an attempt to reduce __________ in used car markets
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse
today, the cash price for corn (delivery october) in nevada, ia is $3.30/bu and the cash price for corn is $3.24/bu in grinnell, ia. if a producer calculated that $0.08/bu was the amount that it would cost to cover all transportation and handling costs for shipping corn from grinnell to nevada, a farmer located near granola would:
a) sell corn in grinnell b) pay transport costs and sell corn in nevada
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
If Candidate X is running for office against Candidate Z, then:
A. all voters to the left of Z will vote for X, and all voters to the right of Z will vote for Z. B. all voters who would have voted for Y will vote for X. C. Candidate X might win. D. Candidate Z will win.
When increasing its output results in falling costs, a firm that can adjust all inputs is experiencing
A. loss. B. diseconomies of scale. C. capital gains. D. economies of scale.