Normative economics concerns
a. analysis of social and economic norms
b. statements of fact
c. the analysis of what is
d. the study of what ought to be
e. value-free judgments
D
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Which of the following is likely to be used as a signal in the job market?
A) The job description B) The degree obtained by the applicant C) The letter of appointment D) An announcement of vacancy
What is one potential problem with offering a choice of contracts to two different employees?
A) If Employee A is paid more than Employee B, Employee A might sue for discrimination. B) Employee A might be paid less than Employee B, proving statistical discrimination. C) The two employees might compare salaries without comparing risk-preferences, thereby running the risk of jealousy or claims of discrimination. D) The two employees might compare risk preferences without comparing salaries, thereby running the risk of jealousy or claims of discrimination.
Suppose a price ceiling is currently set below the equilibrium price. Now suppose that policy makers decide to lower the price ceiling. This reduction in the price ceiling will cause which of the following to occur?
A) The shortage in the market will decrease. B) The shortage in the market will increase. C) The surplus in the market will decrease. D) The surplus in the market will increase.
The value of the marginal product of any input is equal to the marginal product of that input multiplied by the
a. wage. b. marginal cost of the output. c. change in total profit. d. market price of the output.