Positive economics
a. postulates a relationship that is potentially refutable and then seeks to determine whether the stated relationship is correct.
b. uses value judgments to determine which policy alternatives should be chosen.
c. is of no use to policy makers because it reflects the value judgments of the researcher.
d. is the scientific study of "what ought to be" among economic relationships.
A
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If Tattling Tina tattles, what would Bratty Brenda's best response be
a. Hit b. Not hit c. Run d. Hide
Which of the following is a primary difference between price takers and price searchers that operate in markets with low barriers to entry?
a. The price searchers will maximize profits in the short run, but price takers will not. Price takers can only maximize profits in the long run. b. The price searchers will have to search for the price, while price takers will have to take the price determined in the market. c. The price searchers will be able to earn profit in the long run, but the price takers will not. d. The price searchers may be able to earn profit in the short run, but the price takers will not be able to do so.
Why do the individual demand curves for Peter and Lois have steeper downward slopes than the market demand curve?
a. The market demand curve has a larger change in quantity of coffee demanded than individual curves.
b. The market demand curve has a larger change in coffee prices than individual curves.
c. The market demand curve has a lesser change in quantity of coffee demanded than individual curves.
d. The market demand curve has a lesser change in coffee prices than individual curves.
Suppose that there is a negative externality associated with alcohol consumption in the United States. Will the United States be better or worse off if it eliminates all tariffs on alcohol imports?
a. The United States will always be better off when tariffs on imported alcohol are eliminated. b. The United States will always be worse off when tariffs on imported alcohol are eliminated. c. The United States will be no better or worse off when tariffs on imported alcohol are eliminated. d. The United States will be better off only if the private gains from trade exceed the increased social costs of alcohol consumption when tariffs on imported alcohol are eliminated.