The study of microeconomic theory focuses on
A. individual behavior in the economy
B. Operation of the entire economy.
C. Interaction of international trade and domestic production of goods and services.
D. Role of the banking system in the economy.
Answer: A
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Evaluate the following statement – "Economists are fond of saying that there are positive statements and normative ones but the truth is that all questions are really normative"
What will be an ideal response?
A movement along a consumption function is caused by:
a. a change in households' real assets. b. a change in interest rates. c. changes in taxation policy. d. expectations of price changes. e. changes in households' disposable incomes.
In the long run, changes in prices of goods and services paid by consumers have no effect on:
A. the macroeconomy. B. aggregate supply. C. aggregate demand. D. All of these are true.
Why is it necessary to separate the management function in an organization from those of finance and residual claimancy?