Which of the following is a question answered with positive economic analysis?
A. Should the college reduce tuition for out-of-state residents?
B. Should the college charge higher tuition for part-time students?
C. If the college increased its eligibility requirements for enrollment, will class sizes decline?
D. Should the college eliminate its athletic program to cut its costs?
Answer: C
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In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to demand that more jobs be created. D) The government will step in and order firms to hire more workers.
Assume that inventories declined by more than analysts predicted. This implies that
A) planned aggregate expenditure was less than real GDP. B) planned aggregate expenditure is unrelated to real GDP. C) planned aggregate expenditure was greater than real GDP. D) planned aggregate expenditure was equal to real GDP.
The fastest growing productivity increases in the United States have occurred in the personal services sector.
Answer the following statement true (T) or false (F)
You have just graduated from college and are buying a brand new car. There are two on the lot: a green one and a blue one. Both have the same features for the same price. Is there a potential asymmetric information problem?
What will be an ideal response?