When economist make normative statements they are?
a. speaking as scientists.
b. speaking as policy advisers.
c. making claims about how the world is.
d. revealing that they are very liberal in their views of how the world works.
b. speaking as policy advisers
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Wilbur Rickhiser, a financial advisor, recently told one of his clients: "The biggest mistake you can make is to hold onto a stock for too long in order to avoid a loss
Let's say you bought a stock for $50 per share but that six months later the price fell to $40 after a poor earnings report. Many of my clients in this situation will hold the stock, hoping the price will later rise above $50. In most cases like this the price does not rise and may even fall. You must know when to cut your losses." Which of the following is the best explanation for Rickhiser's advice? A) People sometimes make mistakes when they buy stocks or when they buy goods and services: they ignore the monetary opportunity costs of their choices. B) People sometimes buy stocks because other people are buying them or they want to appear to be fashionable. C) People sometimes make mistakes when they buy stocks because of the endowment effect. D) People often fail to ignore the sunk costs of their decisions. The cost of the stock bought at $50 per share is a sunk cost.
There are several motives for holding assets in the form of money. What are they? Provide an example of each
If firms in a monopolistically competitive market are earning positive profits, then
a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market.
The elasticity of supply is given by
A. 
B. 
C. 
D. All of these are correct.