Answer the following statement true (T) or false (F)
1) Positive statements are expressions of value judgments.
2) Macroeconomics explains the behavior of individual households and business firms;
microeconomics is concerned with the behavior of aggregates or the economy as a whole.
3) Purposeful behavior implies that everyone will make identical choices.
4) Marginal analysis means that decision makers compare the extra benefits with the extra costs
of a specific choice.
1) F
2) F
3) F
4) T
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The amount of a product that people are willing and able to purchase at a specific price is referred to as the:
a. demand. b. quantity demanded. c. law of demand. d. consumption function. e. purchasing power.
If a firm's economic profit is positive, its accounting profit must also be positive
Indicate whether the statement is true or false
Based on your answer to part (a), is there an economic incentive for the sources to participate in the trading program? Explain briefly.
Suppose two point sources are discharging phosphorus into Wisconsin’sFox River and face the following abatement costs for this pollutant: Point Source 1: TAC1 = 500 + 0.35(A1)2 MAC1 = 0.7A1 Point Source 2: TAC2 = 750 + 1.05(A2)2 MAC2 = 2.1A2, where A1 and A2 represent the abatement of phosphorus effluents in pounds by Source 1 and Source 2, respectively, and TAC and MAC are measured in hundreds of dollars. Assume that the state environmental authority has set the total maximum daily load (TMDL) for the Fox River. To achieve this limit, 40 pounds of phosphorus must be abated across the two point sources. Use this information to answer the following questions.
A mortgage, where the monthly payments are the same for the duration of the loan, is an example of a(n):
A. installment loan. B. equity security. C. variable payment loan. D. fixed payment loan.