Positive economics
a. postulates relationships among economic variables that are potentially refutable by real-world events.
b. is strictly quantitative and is, therefore, of little value to policy makers.
c. will usually indicate which economic policy is best.
d. is the same as normative economics.
A
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If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) equal to its revenues; small relative to its liabilities. B) high; large relative to its liabilities. C) high; small relative to its liabilities. D) low; large relative to its liabilities
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.If both players choose their dominated strategy they will each earn ________, and if both players choose their dominant strategy they will each earn ________.
A. $900; $1,350 B. $1,000; $900 C. $500; $1,350 D. $900; $1,000
Refer to the table below. At the $3 price for labor the most efficient technique will result in an:
The following table illustrates alternative production techniques for producing 18 widgets that can be sold for $1 each for a total revenue of $18.
A. Economic loss of $2
B. Economic profit of $l
C. Economic profit of $2
D. Economic profit of $3
The automobile industry is a good example of a monopolistically competitive industry.
Answer the following statement true (T) or false (F)