Which of the following statements is true?
A) A rational economic agent is not likely to optimize.
B) Cost-benefit analysis can also be used for normative economic analysis.
C) Cost-benefit analysis does not yield the same result as optimization analysis.
D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
B
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________ economics is analysis that generates objective descriptions or predictions about the world that can be verified with data
A) Positive B) Negative C) Marginal D) Normative
Keynesians argue that velocity is
A) equal to the inflation rate. B) equal to one. C) negative. D) unpredictable.
Which of the following problems best describes what may occur when Dixie hires an attorney to help in her child-custody suit?
a. the winner's curse b. a signaling problem c. a principal-agent problem d. an adverse selection problem e. unemployment
Which of the following policies is the government most inclined to use when faced with a positive externality?
a. taxation b. permits c. subsidies d. usage fees