Whenever statements embodying values are made, we enter the realm of
A) positive economics.
B) normative economics.
C) microeconomics.
D) macroeconomics.
B
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A real flow in the circular flow diagram is
i. a firm's payments of wages to its workers. ii. a household's purchase of a new car. iii. a farmer's use of land to grow corn. A) ii and iii B) i only C) i and iii D) ii only E) i, ii and iii
Refer to Figure 15-7. Use the figure above to answer the following questions
a. What is the profit-maximizing quantity and what price will the monopolist charge? b. What is the total revenue at the profit-maximizing output level? c. What is the total cost at the profit-maximizing output level? d. What is the profit? e. What is the profit per unit (average profit) at the profit-maximizing output level? f. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?
The total quantity of a good that all buyers in the market would buy at various prices at a given time is known as
a. individual demand. b. conglomerate demand. c. market demand. d. additive demand.
Using the ISLM model, explain the effects of a monetary expansion combined with a fiscal contraction. How do the equilibrium level of output and interest rate change?
What will be an ideal response?