Normative analysis is very important to public finance because _____
a. public policy enacted by government is the result of voting by individuals
b. positive analysis is full of value judgments
c. we should be concerned with how the world works
d. voluntary exchanges are economically efficient
a
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The Bureau of Labor Statistics counts underemployed persons as those who are currently working:
A. in a job for which they are overqualified for. B. in a field that doesn't add a lot to overall GDP. C. less hours than their employer requires full-time workers to work. D. less than they would like to be.
Compare and contrast cardinal utility and ordinal utility. Which concept is sufficient for ranking consumers' preferences? Why?
What will be an ideal response?
The monopolist chooses to produce:
A. where marginal cost equals marginal revenue. B. at a higher quantity than the perfectly competitive firm. C. at an efficient outcome. D. at a cost that is equal to a competitive one.
In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans. They extended many of these loans in the early 1970s when inflation was low. Were the savings and loans winners or losers as inflation skyrocketed in the late 1970s?