Normative statements are concerned primarily with:
A. facts and theories.
B. what ought to be.
C. what is.
D. rational choice involving costs and benefits.
Answer: B
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Which of the following best approximates a pure monopoly?
A. the fast food market B. the oil market C. the steel market D. the NFL
Briefly describe the significance of equilibrium output and price on consumer and producer surplus.
What will be an ideal response?
A decrease in the price level will cause:
A. a movement rightward along the short-run aggregate supply curve. B. the aggregate demand curve to shift to the right. C. the long-run aggregate supply curve to shift to the right. D. the short-run aggregate supply curve to shift to the right.
If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, this market is operating in which section of its downward-sloping straight-line demand curve?
A. the section above the point of unit elasticity B. the point equal to unit elasticity C. the section below the point of unit elasticity D. This market show elastic demand which could occur at any point along the demand curve.