Positive economics can tell us which policies are efficient and which are not.
Answer the following statement true (T) or false (F)
True
Rationale: Efficiency is an objectively defined concept: A situation is efficient if there is no way to make some people better off without making others worse off. To say that one situation is more efficient than another is not a normative statement --- even if often people think it is the same as saying that one situation is better than another.
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Explain what is meant by the economic principle of voluntary exchange
What will be an ideal response?
According to this Application, some economists noticed that the U.S. dollar ________ largely because monetary policy in the United States had driven interest rates ________
A) depreciated; up B) appreciated; up C) appreciated; down D) depreciated; down
Refer to the accompanying figure. If demand shifts from D1 to D2, and at the same time, supply shifts from S1 to S2, then according to the figure:
A. the equilibrium quantity will decrease and the equilibrium price will increase. B. the equilibrium quantity will increase and the equilibrium price will increase. C. the equilibrium quantity will increase and the equilibrium price will decrease. D. the equilibrium quantity will decrease and the equilibrium price will decrease.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.