Normative economics
What will be an ideal response?
focusing on what particular policy actions should be recommended
attempt to prescribe how the world should be
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In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that:
a. existing wells have negatively sloped MC curves. b. existing wells and new wells are owned by different people. c. existing wells and new wells are owned by the same people. d. there is a discrepancy between private and social marginal costs.
Which of the following statements reflect sound economic reasoning?
A) If domestic production of a good will employ lots of people, the good should be produced domestically. B) Higher tariffs will increase the total volume of international trade. C) Foreign competition will reduce the wealth of Americans. D) If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it.
For this question, assume that expectations of P and A are correct. Based on price setting behavior, the real wage will be equal to which of the following?
A) A/(1 + m) B) AP/(1 + m) C) APF(u,z) D) P(1 + m) E) none of the above
Referring to Table 4.2, Box R should be filled with 
A. $6.00. B. $30. C. $12.50. D. $8.00.