Normative analysis offers decision makers the most valuable information when choosing among alternatives
Indicate whether the statement is true or false
False. Normative analysis states subjective goals but not how those goals can be achieved. To choose among alternatives, decision makers use positive analysis.
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Peaks and troughs of the business cycle are known collectively as
A) volatility. B) turning points. C) equilibrium points. D) real business cycle events.
Two court cases that applied to the regulation of business were Munn v Illinois (1877) and Nebbia v New York (1934). Regarding these two cases, which of the following is true?
(a) The former case, in effect, gave the federal government more comprehensive powers to regulate business than the latter case. (b) The latter case gave the federal government more comprehensive powers to regulate business. (c) Both cases were equally important in giving the federal government powers to regulate business. (d) Neither case was very important with regard to federal regulation of business but set a precedent for later, more important court cases.
If a small percentage change in price causes a larger percentage change in the quantity demanded, the good has:
A. an elastic demand. B. an inelastic demand. C. a high magnitude of response. D. a low magnitude of response.
The No-Good Company produces goods that provide damages to society-at-large. If consumers of No-Good's products fail to take external benefits into account
A) the demand curve will be too far to the left. B) the supply curve will be too far to the left. C) the demand curve will be too far to the right. D) the supply curve will be too far to the right.