Individuals use microeconomic models to determine
A) their optimal consumption of beer given an increase in inflation.
B) their optimal amount of leisure.
C) whether or not to go to college given current student loan interest rates.
D) All of the above.
D
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Normative economics involves
A) a statement of fact. B) a statement of "what should be." C) a statement of "what is." D) a statement that is purely descriptive.
What is the difference between the short run and the long run as economists define the two?
Advertising never makes sense for an oligopolistic firm.
Answer the following statement true (T) or false (F)
Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not for human capital investments. b. different in that human capital decisions do not involve future income considerations, while physical capital investments do. c. similar in that nonmonetary considerations play an equally important role in both. d. similar in that both involve forgoing current income (and consumption) in an effort to achieve higher future income (and consumption).