Normative economic analysis
a. involves the study of what comprises a normal firm.
b. involves how resources are actually used in an economy.
c. involves judgments on how resources should be used in an economy.
d. is usually thought to be a waste of time.
c
You might also like to view...
Before Social Security, 51 percent of men over age 65 worked. Today that number is
A. 9 percent. B. 32 percent. C. 43 percent. D. 24 percent.
Using graphs, explain how indirect crowding out can occur when the government increases spending in an attempt to stimulate the economy
What will be an ideal response?
A recessionary gap exists when the level of full-employment output exceeds the equilibrium level of output
Indicate whether the statement is true or false
Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions
a. cause unemployment, but efficiency wages do not. b. cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. c. cause wages to be above the equilibrium level. d. prevent firms from lowering wages in the presence of a surplus of workers.