The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is
A. microeconomics.
B. macroeconomics.
C. positive economics.
D. normative economics.
Answer: A
You might also like to view...
Describe how a lender can lose during inflation if the inflation is unanticipated and the loan is a fixed-interest-rate loan. How would a variable-interest-rate loan (one that adjusts over the contract period) eliminate these loses?
What will be an ideal response?
If a firm raises the price of its product, its total revenue will
a. always increase b. increase only if demand is price inelastic c. increase only if demand is price elastic d. remain constant, regardless of price elasticity of demand e. never increase
Which of the following is NOT a correct statement?
A. The country has 12 Federal Reserve districts. B. The Federal Open Market Committee carries out open market operations. C. A majority of private banks are not part of the Federal Reserve System. D. The Fed chairman is appointed by the president for 14 years. E. The Senate ratifies the president's appointment of the chairman of the board of governors of the Fed.
Which of the following describes the effect of government spending?
A. Govt spending increases, taxes increase, disposable income increases, consumption decreases, AD decreases, price and quantity decrease B. Govt spending increases, money supply increases, income decreases, investment increases, AD increases, price and quantity decrease C. Govt spending increases, AD increases, price and quantity increase D. Govt spending increases, consumption increases, AD increases, price and quantity decrease