Most modern economic analysis is normative in nature, but involves questions with positive aspects
Indicate whether the statement is true or false
FALSE
You might also like to view...
Given two investments P and Q, with the former having a mean 0.7 and variance 0.17 and the latter having a mean 0.7 and a variance 0.03, a risk-preferrer will be indifferent between the two
Indicate whether the statement is true or false
There is no deadweight loss from subsidy
a. True b. False Indicate whether the statement is true or false
For a worker, the opportunity cost of an hour of leisure
a. rises by $8 when his wage rises by $8 per hour. b. falls by $8 when his wage rises by $8 per hour. c. is the same for a celebrity talk-show host as it is for a teacher. d. is determined by factors that are unrelated to his hourly wage.
If production is characterized by increasing returns to scale, then
a) the economy is self-sufficient and will not engage in foreign trade b) intra-industry trade is likely to occur c) the nation is more likely to be a net importer than a net exporter d) the production possibilities set is limitless e) smaller production runs are more economical than large ones