Aggregation allows economists to ________ at the cost of ________.
A. make normative statements; ignoring positive analysis
B. see the details; obscuring the big picture
C. see the big picture; obscuring the details
D. make positive statements; ignoring normative analysis
Answer: C
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A theory is an abstraction used often by economists to
A. describe a problem. B. keep all assumptions in their proper places. C. explain why things work the way they do. D. describe a hierarchical ordering of facts. E. arrange variables into a graphical format.
Susan likes to drink sodas. The ________ soda Susan drinks, the ________ of the last soda
A) more; higher the marginal benefit B) less; higher the opportunity cost C) less; lower the marginal benefit D) more; lower the marginal benefit
We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:
A. a climate is more suitable for electronics. B. more land available to build manufacturing plants on. C. more advanced electronics technology. D. more unskilled labor available for production.
Which of the following is a property of an indifference curve? a. An indifference curve typically slopes downward
b. Two indifference curves always intersect. c. An indifference curve generally follows the principle of less is better. d. The value of utility changes along an indifference curve.