In the figure above, assuming that the firm does not shut down, it will charge a price of
A) $1.
B) $2.
C) $3.
D) $4.
C
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Positive economic analysis answers what question?
What will be an ideal response?
Suppose two economists disagree about who would be helped or hurt by certain legislation. These disagreements
a. are positive in nature b. are minor and rarely lead to different policies or conclusions c. are normative in nature d. occur as the result of a mistake made by an economist e. occur because economic models are more complex, and subject to error, than the real world
What key observation did the classical model attempt to explain?
a. the economy performs well in the short run, but not so well in the long run b. business cycles are the most important economic problem c. over the short run, the economy performs rather poorly d. markets do not clear without government intervention e. over the long run, the economy performs rather well
To produce 100 bushels of wheat, Farmer A requires fewer inputs than does Farmer B. We can conclude that Farmer A has an absolute advantage over Farmer B in producing wheat
a. True b. False Indicate whether the statement is true or false