Normative economic analysis tends to
A. generate testable hypotheses.
B. lead to empirical testing of data.
C. include the way someone thinks things should be or ought to be.
D. involve descriptive statements.
Answer: C
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Roughly speaking, the nominal interest rate is __________ than the real interest rate by the amount of the expected __________
A) higher; growth rate of real GDP B) higher; inflation rate C) lower; growth rate of real GDP D) lower; inflation rate
Sue's Bagel Shop wants to estimate how responsive the demand for bagels is to a change in her cream cheese prices. To accomplish this task, the following data would not be needed:
a. percentage change in bagel prices b. original price of cream cheese c. new quantity of bagels sold d. original quantity of bagels sold e. new price of cream cheese
The lack of success among monopolistic competitive and oligopolistic firms to become monopolies can be attributed primarily to
a. lack of business skills b. lack of financing c. failure to maximize profit d. inability to establish effective barriers to entry e. inefficient production methods
If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that
a. Y and Z are complements. b. Y and Z are substitutes. c. Y and Z are unrelated. d. the demand for Y is elastic, but the demand for Z is inelastic.