Understanding the distinction between positive and normative economic statements is important because it
a. enables us to derive better forecasts of macroeconomic aggregates such as GDP
b. explains why economics is not a physical science
c. is the primary distinction between macroeconomics and microeconomics
d. provides a framework for understanding differences among economists
e. enables us to see the rationale behind economic models
D
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?Because trade across markets creates winners and losers,the overall surplus in the loser's market is diminished.
Answer the following statement true (T) or false (F)
What reason do economists believe that megabanks are forming?
A) Megabanks enable economies of scale in information processing which allows them to better serve their customers. B) Megabanks create economies of scale which allow the banks to make riskier investment and increase profits. C) Megabanks can compensate for their economies of scale by diversifying into many countries. D) Megabanks allow investors more opportunities and have continued to grow by using their economies of scale to overwhelm their competition.
If price increases and the quantity purchased increases, we know that
A. demand decreased. B. supply decreased. C. demand increased. D. supply increased.
In 2017 about 12% of personal income in the United States came from
A. wage supplements. B. property income. C. wages and salaries. D. transfer payments.