Which of the following would most likely be part of the study of microeconomics?
A) how General Motors makes decisions regarding its production goals
B) national income
C) the total economic output of our domestic economy
D) overall price stability in the United States
A
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In a market for emission permits, firms that emit over their allowed limits
A) are forced to shut down. B) are taxed by the government for the amount of emissions. C) receive a subsidy for the amount of emissions. D) pay a price of these emissions.
As income levels rose moderately last year in the San Jose area, it was observed by local realtors that housing sales increased substantially. It is clear from this information that, everything else held constant, the income elasticity of demand for houses is _____
a. negative and relatively low b. negative and relatively high c. positive and relatively low d. positive and relatively high e. neither positive nor negative
Positive analysis:
A. aims at determining only the economic consequences of a particular policy. B. recommends whether a policy should be implemented. C. determines whether the consequences of a policy are desirable. D. depends on the analyst's values.
The rule of reason refers to the interpretation of the courts that dominant firms should be broken up because of their:
A. market share dominance, regardless of their business practices. B. illegal business practices, not based on their market dominance alone. C. marginal cost pricing, rather than average cost pricing. D. average cost pricing, rather than marginal cost pricing.