In deciding how many guitars to buy for his shop before the Christmas season, Mark is making a(n) ________ decision.
A. macroeconomic
B. microeconomic
C. normative
D. irrational
Answer: B
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Al works as a sales clerk at a department store for a fixed salary of $2,500 per month
He is offered a job as a salesperson at a car dealership in which there is a 50 percent chance that he will make $5,000 a month and a 50 percent chance that he will make only $1,000 a month. The figure above Al's utility of wealth curve: a) What is Al's expected income from the offered job? b) What is Al's expected utility from the offered job? c) Will Al accept the offer? Why or why not? d) What is the minimum fixed salary for which Al will continue to work for the department store and not accept the dealership's offer?
"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement
Indicate whether the statement is true or false
Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to: a. increase U.S. exports to Mexico
b. decrease U.S. exports to Mexico. c. increase Mexican exports to the rest of the world. d. decrease Mexican exports to the rest of the world.
Advocates of an active policy associate a low cost with the passive approach so, they favor an active stabilization policy to stimulate aggregate demand
Indicate whether the statement is true or false