Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered
A. microeconomics.
B. empirical economics.
C. macroeconomics.
D. descriptive economics.
Answer: A
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What does the price elasticity of demand show?
In the market for sweaters, suppose Green's price elasticity of demand is 0.2, Smith's price elasticity is 1.2, and the price elasticity of all the other consumers is greater than 0.2 but less than 1.2 . Could the market price elasticity be less than 0.2 or greater than 1.2?
Economists of the rational expectations school: a. have no confidence in the ability of workers and firms to observe and react to economic events
b. believe workers and firms behave the same regardless of what the Fed does. c. have great faith in the ability of monetary policy makers to maintain a full employment economy with stable prices. d. believe that effective monetary policy can shift the potential level of output to the right. e. believe workers and firms make decisions based on what they think monetary policy will be in the future.
When determining whether an income places a family or individual in poverty, the official poverty rate excludes
a. money income derived from sources other than labor. b. money income received from transfer programs. c. noncash benefits derived from programs supplying recipients with food, housing, and medical benefits. d. noncash benefits that are provided the non-elderly, but it counts these benefits when they are supplied to the elderly.
If a supply curve shifts rightward, this means
A) suppliers are willing and able to offer less of the good for sale at every price. B) suppliers are willing and able to offer more of the good for sale at every price. C) quantity supplied is greater at every price. D) suppliers are willing and able to offer more of the good for sale only at a particular price. E) b and c