"The government should provide health care for all citizens." This statement is an illustration of:
a. positive economic analysis. b. correlation analysis.
c. fallacy of association analysis. d. normative economic analysis.
d
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the left. B) Output will decline. C) Unemployment will decline. D) Prices will decline.
Financial markets are
A) institutions that make loans to borrowers and obtain funds from savers. B) organized exchanges where securities and financial instruments are bought and sold. C) organized exchanges where currencies are traded. D) institutions that regulate financial instruments.
Refer to the above figure. Which of the above panels represents complete income equality?
A) Panel A B) Panel B C) Panel C D) Panel D
A risk-averse investor will:
A. always prefer an investment with a certain return to one with the same expected return but that has any amount of uncertainty. B. always require a certain return. C. always focus exclusively on the expected return. D. never prefer an investment with a lower expected return.