Positive economics is the study of _____ while normative economics is the study of _____.
a. what is; what should be
b. macroeconomics; microeconomics
c. what should be; what is
d. simplifying assumptions; critical assumptions
Answer: a. what is; what should be
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The old adage, "Don't put all your eggs in one basket," is very similar to a modern bit of advice concerning financial matters:
a. "Buy low-risk bonds.". b. "Use a medium of exchange.". c. "Diversify.". d. "Intermediate.".
Which of the following statements is most accurate about the effects of migration?
A. Migration generally benefits the mover, but there is a net efficiency loss to the world. B. Migration generally benefits everyone in both the origin and destination nations. C. Migration generally benefits the mover and creates a net efficiency gain for the world. D. Remittances cause the gains from immigration to be distributed unevenly.
The group that benefited the most from international trade has been people who:
A. no one has benefited. B. owners of firms. C. financed international trade. D. managed firms.
A period during which aggregate output falls is known as a(n)
A. recession. B. inflation. C. expansion. D. hyperinflation.