When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?
A. Positive economics model.
B. Consumer sovereignty.
C. Ceteris paribus.
D. Normative economics.
Answer: C
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Refer to Table 12.1. The inflation rate forecast for Japan is
A) -0.9%. B) 0.9%. C) 1.1%. D) It cannot be determined from the information provided.
Studies have shown that children born into poverty do not suffer from lasting health problems
Indicate whether the statement is true or false
Which of the following is true about long-run equilibrium in a monopolistically competitive market?
a. Firms earn zero economic profit because price equals long-run average cost, but the equilibrium is not allocatively efficient because price exceeds the marginal cost of the last unit produced. b. They may earn negative, zero, or positive economic profit because monopolistically competitive firms are price takers. c. Each firm faces a perfectly elastic demand curve and earns zero economic profit because price equals long-run average cost, and are allocatively efficient because price equals marginal cost for the last unit sold. d. None of the above are correct.
An increase in the price of product G will result in a(n):
a. Decrease in the demand for G b. Larger quantity of G demanded c. Smaller quantity of G demanded d. Increase in the demand for G