When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?
a. Positive economics model. b. Consumer sovereignty.
c. Ceteris paribus. d. Normative economics.
c
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Mergers harm society
A) True. Firms merge to avoid antitrust laws and increase their prices. B) Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency. C) False. Firms gain economies of scale and pass the price savings on to their customers. D) True. Total surplus is reduced when firms merge.
The technique used to calculate the CPI implicitly assumes that consumers buy
A) relatively more of goods with relative prices that are increasing. B) goods and services whose quality improves at the rate of growth of real GDP. C) relatively less of goods with relative prices that are decreasing. D) more computers and CD players and fewer black -and-white TVs. E) the same relative quantities of goods as in a base year.
In the Ricardian model, the marginal product of labor:
a. first rises, then falls, as more labor is employed to produce a good. b. first falls, then rises, as more labor is employed to produce a good. c. continuously falls, as more labor is employed to produce a good. d. does not change, as more labor is employed to produce a good.