Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. The statement that a 1% increase in the automobile emissions causes a 0.0003% increase in average global temperatures is an example of
A. positive economics.
B. normative economics.
C. the fallacy of logic.
D. marginal economics.
Answer: A
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Refer to Table 14-8. If Brawny Juice selects a high price, what is Power Fuel's best strategy and what will Power Fuel earn as a result of this strategy?
A) Power Fuel will select a low price and earn $16 million. B) Power Fuel will select a low price and earn $8 million. C) Power Fuel will select a high price and earn $12 million. D) Power Fuel will select a high price and earn $16 million.
See the information in Scenario 4.4. From this demand curve, one can infer that:
A) Rock and Roll Trivia is an inferior good. B) computers and diskettes are substitutes. C) computers and diskettes are complements. D) computers are a normal good. E) A, B and D are true.
The long-run supply curve for a competitive constant-cost industry is:
a. horizontal. b. vertical. c. upward-sloping. d. downward-sloping.
To the extent that unions can transfer profits from unionized employers to union workers, they will
a. reduce the incentive of unionized employers to invest in fixed capital and research. b. increase employment in the unionized sector. c. reduce the incentive of nonunion firms to invest and expand their output. d. increase the productivity of labor in the long run.