The analysis of the behavior of individual decision-making units is the definition of
A) microeconomics.
B) positive economics.
C) macroeconomics.
D) normative economics.
A
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Refer to the above table. What does the marginal physical product equal when the amount of labor goes from 12 to 13 units?
A) 58.5 B) 70 C) 690 D) 760
How are potential GDP and real GDP alike?
A. They are both influenced by changes in the price level. B. They both increase when the output gap is positive. C. They are both adjusted for inflation. D. They are two different terms for the same thing.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flow in sector Y will eventually
A. generate excess profits. B. eliminate all profits. C. result in excess losses. D. eliminate all losses.
The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for:
A. Income equality B. Income inequality C. Maximization of total utility D. Maximization of marginal utility