It is common for fashion trends to follow celebrity fashion choices. This is an example of:
A. inferring quality from price.
B. bounded rationality.
C. conspicuous consumption.
D. focal point equilibrium.
Answer: D
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Suppose that there is an increase in technology. The classical model predicts that
a. both output and the price level rises. b. output rises and the price level remains the same. c. output rises and the price level falls. d. none of the above.
Borda count is a voting method often used in polls that rank sports teams
a. True b. False Indicate whether the statement is true or false
If a monopolist sells 100 units at $8 per unit and realizes an average total cost of $6 per unit, what is the monopolist's profit?
a. $200 b. $400 c. $600 d. $800
In all cases, normative economics deals with
A) what is. B) what should be. C) relatively small units in the economy. D) the entire economy.