The branch of economics that focuses on decision making for the economy as a whole is called:
a. normative economics. b. macroeconomics.
c. microeconomics. d. consumer economics.
b
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Normative analysis:
A. aims at determining only the economic consequences of a particular policy. B. does not depend on the analyst's values. C. addresses the question of whether a policy should be used. D. focuses on the actual effects of a policy.
Which of the following is not possible when a firm is maximizing its profits?
a. MC = MR b. AVC is at its minimum point c. AFC < AVC d. MC = MR and MC is decreasing e. MC = MR and MC is increasing
According to the figure shown, Nike:
A. will reach an optimum outcome by acting in its own self-interest. B. has a dominant strategy to charge a high price. C. has a dominant strategy to charge a low price. D. does not have a dominant strategy.
Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 What is Lando's accounting profit each month?
A. $5,000 B. ?$1,000 C. ?$5,000 D. $1,000