Economic theory
a. expresses normative values
b. invents imaginative and interesting stories
c. predicts the behavior of a specific economic decision maker after an economic change
d. predicts the average behavior of a group of similar economic decision makers after an economic change
e. uses only perfect and complete information
D
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Which of the following bond types is the MOST safe?
Which of the following is the most likely cause of a recession according to classical and new classical models?
a. government policy. b. unstable expectations. c. a fall in expected profits. d. an anticipated change in the money supply. e. none of the above.
If a person supplies more hours of labor in response to a wage increase, then
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) the income effect equals the substitution effect. D) the person is not maximizing utility.
If the price level rises, there is
A) a leftward shift of the demand for money curve. B) an upward movement along the demand for money curve and the curve does not shift. C) a downward movement along the demand for money curve and the curve does not shift. D) no movement along the demand curve for money and the curve does not shift. E) a rightward shift of the demand for money curve.