How does the science of economics deal with the fact that we all have different values?
A) by assuming that values don't play a role in economic behavior
B) by seeking to discover the sources of different value systems
C) by using positive analysis
D) by surveying the public to see what the most common values are, and then incorporating those as assumptions into their models
Answer: C
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The following table shows Alex's estimated annual benefits of holding different amounts of money.Average moneyholdings($)Total benefit($)700508005990066100071110074How much money will Alex hold if the nominal interest rate is 4 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $800 B. $700 C. $900 D. $1,000
The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line
A) Investors A and B will hold the same portfolio. B) Investors A and B will have different portfolios of the same standard deviation. C) Investors A and B will have different portfolios of the same rate of return. D) Investors A and B will have different portfolios but have the same level of risk aversion. E) Investor A will expect to earn a lower rate of return than investor B.
If a nation has a comparative disadvantage in the production of some commodity, a. it can gain from international trade in that commodity only if it has an absolute advantage in that commodity. b. it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if they produced it domestically. c. it cannot gain from international trade in the
commodity. d. it cannot gain from international trade unless it has an absolute advantage in every other commodity.
When economists use market values to aggregate output, they sum the:
A. price times the quantity of each item produced. B. inputs of each item produced. C. number of items produced. D. quantity of items produced.