Which of the following statements is TRUE regarding the textbook used in this course?
A. The textbook presents only economic theory, so no value judgments are involved in the text.
B. The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis.
C. The textbook does not include normative statements.
D. The selection of topics included in the book involves value judgments as well as economic theory.
Answer: D
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Neoclassical growth theory
A) predicts that growth rates and incomes per person throughout the world will converge. B) predicts that the faster growing underdeveloped nations will overtake and then surpass the industrial nations. C) predicts that nations that enjoy a technological advantage will maintain that advantage. D) makes no predictions about the relative growth or incomes among countries.
Social Security is:
A. not purely a pension program, because some people receive more than they paid in. B. a means-tested public assistance program designed to assist the poor. C. a means-tested public assistance program designed to reduce income inequality. D. a pension program that returns benefits to participants equal to the amount paid in.
A perfectly competitive firm discovers that its MRPL divided by the wage equals 1.5. The firm should
A) check the MRP of the other inputs and divide them by their prices. If they are all equal to 1.5 it is maximizing profits. B) hire more labor. C) purchase more capital. D) try to pay a lower wage rate.
Answer the following questions true (T) or false (F)
1. Agricultural economics is an applied social science. 2. The U.S. economy represents a mixture of capitalism and socialism. 3. The U.S. economy represents a purely capitalistic system.