Economics is a science that:
a. typically uses controlled experiments to learn about consumer and firm behavior
b. uses models that cannot be tested empirically due to the complex nature of the economy.
c. explores how choices are made between conflicting wants and desires in a world of scarcity.
d. relies entirely upon normative analysis.
c
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The bowed shape of the per-worker production function is caused by
A) wealth effects that reduce labor supply. B) diminishing marginal productivity of capital. C) increasing marginal productivity of labor. D) increasing marginal productivity of capital.
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 next month, this is an example of ________.
A) a preannouncement B) a precommitment C) a meet-the-competition clause D) price leadership
If the interest rate is 5 percent, then what is the present value of $2,000 to be received in three years?
A decrease in the price of peanut butter will most likely cause an increase in the demand for ______.
a. orange juice b. margarine c. jelly d. cheese spread