Which of the following is assumed in virtually every economic model?
a. Inefficiency exists in the economy.
b. Decision makers operate in the face of unlimited resources.
c. All decision makers face constraints.
d. Normative economic statements are derived from mathematical equations.
e. Positive statements are derived from normative statements.
C
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The per-worker production function is ________
A) upward-sloping B) downward-sloping C) vertical D) horizontal
If the amount that consumers wish to save at the full employment level of income is greater than the amount that businesses plan to invest, then
a. there will be an inflationary gap. b. there will be a recessionary gap. c. total demand will exceed potential GDP. d. the economy will move to a higher level of output.
Governments may intervene in private markets through
A. price floors. B. price ceilings. C. rationing by political power. D. All of these.
If PX > MCX, society gains by producing more X.
Answer the following statement true (T) or false (F)