Normative economic analysis involves
A) positive analysis.
B) value judgments.
C) if-then statements.
D) objective descriptions of the way things are.
Answer: B
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Newsgroup Markets
Visit one of the following newsgroups: (Newsgroups provide lists of messages on a particular topic. Google provides a searchable interface for these newsgroups.)
- rec.antiques.marketplace
- rec.audio.marketplace
- rec.music.makers.marketplace
Questions:
- Do participants in such lists receive gains from trade? How?
- Does the existence of internet newsgroups such as these allow some individuals to gain from trade that might not otherwise occur? Explain.
A society that relies on a market-based economy will always protect the natural environment.
Answer the following statement true (T) or false (F)
The Fed ________ intervene in the foreign exchange market by supplying dollars and the Fed ________ intervene in the foreign exchange market by demanding dollars
A) can; can B) cannot; can C) can; cannot D) cannot; cannot
If there is a negative externality in production, ______.
a. firms bear the entire cost b. firms share the costs with others c. others bear the entire cost d. government bears the entire cost