Normative economic statements
A) violate the law of ceteris paribus.
B) contain value judgments.
C) are usually irrational.
D) are easily testable.
Answer: B
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An indirect tax is exemplified by
A) an income tax. B) a sales tax. C) a subsidy. D) None of the above answers is correct.
Microeconomics primarily models: a. the overall economy
b. the behavior of firms but not households. c. the behavior of households but not firms. d. the behavior of both firms and households and how they interact in the marketplace.
Which statement concerning President Nixon's wage and price controls is not true?
a. They were designed to control inflation . b. As soon as they were lifted, their impact on the economy proved to be ineffective. c. They prohibited wage and price increases for 90 days. d. They were voluntary. e. They distorted free market signals.
The adverse selection problem in health care occurs because people who are healthier are less likely to buy health insurance because they are less likely to need it.
Answer the following statement true (T) or false (F)