Suppose an economist advises the government to disallow a proposed merger between Wendy's and McDonald's because she thinks the fast-food industry ought to be as competitive as possible. This advice is an example of
a. positive economics
b. normative economics
c. market discrimination
d. econometric analysis
e. macroeconomic analysis
B
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According to the quantity theory of money and prices, a 2 percent increase in the money supply ultimately leads to
A) a 2 percent increase in real GDP. B) a 2 percent increase in wages. C) a 2 percent increase in the price level. D) a 2 percent increase in velocity.
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
a. the development of strong labor unions b. a sharp increase in the legal minimum wage c. an increase in expenditures on education and capital investment d. rapid growth rate of the money supply
The opportunity cost of something is the nominal price paid for the product.
Answer the following statement true (T) or false (F)
The definition of a price taker is:
A. having market power. B. having government determine what you sell goods and services for. C. being competitive. D. having no control over the market price.