Positive economics is descriptive because:
A) it is based on ethical judgments.
B) its predictions cannot be verified with data.
C) it prescribes what an individual or society ought to do.
D) it explains what has happened or predicts what will happen.
D
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A large government debt can reduce the amount of ________ in an economy and reduce future income and real wages for citizens
A) employment B) capital C) social benefit programs D) government spending
A firm sells in a competitive market in which price is $10 . Its marginal cost is 2 + .5Q. Determine the profit-maximizing level of output
The economy is considered to be at full employment when
a. the actual rate of unemployment is less than the natural rate. b. the leading economic indicators are unchanged for two consecutive quarters. c. structural unemployment is zero. d. frictional plus structural unemployment is less than the natural rate. e. the rate of cyclical unemployment is zero.
A price follower in an oligopoly is a competitor that ______.
a. requires customers to buy tied goods b. goes along with the pricing decision of the price leader c. acts as the dominant firm in price leadership d. produces a large portion of the total output