Which of the following represents positive economics?
a. All of these choices are positive economic analysis.
b. Policy A is fair.
c. Outcome B is the best objective to achieve.
d. If policy A is followed, then outcome B results.
d
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Government saving is equal to
A) net taxes. B) net taxes minus government expenditures. C) net taxes plus government expenditures. D) private savings minus government expenditures. E) the quantity of investment demanded.
In the long run, constant returns to scale necessarily occur when the firm increases its production and the firm's
A) total cost increases. B) total cost does not change. C) average total cost increases . D) average total cost does not change. E) production increases by more than does the firm's total cost.
Which of the following is a possible market solution to the lemons problem?
A) Producers might offer product guarantees and warranties. B) Producers might be required to meet certain legal standards to obtain licenses granting the right to sell their products. C) Government agencies might be charged with directly overseeing production and distribution of certain products. D) Liability laws might be established to ensure that firms selling certain products must face penalties in the event the products function poorly.
The Bretton Woods agreements
a. established a system of fixed exchange rates based on the free convertibility of the U.S. dollar into gold. b. established a system of fixed exchange rates based on the gold standard. c. permitted countries with a balance of payments deficit to make regular devaluations of their currencies. d. established GATT to police and manage exchange rates.