Economists use ____ economics to understand how the economy works. They use ____ economics to choose from among several economic policies
a. statistical; circular flow
b. macro; micro
c. micro; macro
d. positive; normative
e. normative; positive
D
You might also like to view...
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.
Archie wants to buy a steak for dinner. When he goes by the store, he sees that the price of steak has gone up a lot since the previous week. He decides to buy hot dogs instead. The __________ means that even though Archie has the same amount of money he did last week, that money won’t buy the same amount of steak today.
a. income effect b. substitution effect c. inflationary effect d. deflationary effect
The labor force of Rhodia is 50 million, of which 25 million are employed. This implies that the unemployment rate in this country is _____
a. 50% b. 10% c. 20% d. 40%
Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making ________ while Julia should specialize in making ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes; pies B. both pies and cakes; neither pies nor cakes C. pies; cakes D. neither pies nor cakes; both pies and cakes