A normative statement is
A) about what ought to be.
B) about what is.
C) always true.
D) one that does not use marginal concepts.
A
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Economists recognize what is sometimes referred to as "psychic income" such as the value some people attach to being their own boss
As such, failure to factor in psychic income when calculating economic profit could result in an understatement of the actual economic profit received from a particular enterprise. Indicate whether the statement is true or false
Which of the following statements is (are) correct? The new classical economics
a. questions the soundness of the Keynesian model, arguing that many of its relationships are not firmly based on individual optimizing behavior. b. criticizes what it considers arbitrary assumptions of Keynesians concerning wage stickiness and consequent involuntary unemployment. c. favors the rational expectations assumptions over formulations that assume that individuals form price expectations on the basis of past history of prices because the rational expectations hypothesis is consistent with individual optimizing behavior. d. All of the above e. None of the above
Gresham's Law states
a. supply creates its own demand b. demand creates its own supply c. MV = PQ d. good money drives out bad e. bad money drives out good
In cases of natural monopolies, society would be better off with many firms competing with each other
a. True b. False Indicate whether the statement is true or false