Macroeconomists are more likely than microeconomists to deal with:
A. individual firms
B. the scarcity principle
C. aggregation
D. positive analysis
Answer: C
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Which of the following is true of a Nash equilibrium?
A) A game can have only one Nash equilibrium. B) No player can improve his payoff by changing his strategy once in Nash equilibrium. C) A Nash equilibrium cannot occur if each player is aware of the strategies of other players. D) A Nash equilibrium occurs if each player earns a zero payoff irrespective of the strategy he chooses.
In a famous series of commercials, the International Ladies’ Garment Workers Union (ILGWU) urged buyers to “look for the union label” and to avoid buying clothes not made by ILGWU members. Through the commercials, the ILGWU tried to attain its goals by
A. restricting the number of ILGWU members. B. featherbedding. C. raising the marginal revenue products of ILGWU members. D. creating lower prices for goods made by ILGWU members.
An advantage of automatic stabilizers is that this type of fiscal policy
A. requires precise knowledge of full-employment real GDP. B. can be influenced by special interest groups when their concerns are valid. C. is not subject to lag time problems. D. accelerates the direction in which the economy is moving at the time.
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The profit for the business is ________ when the average price per greeting card is $7.50.
A. $78,000 B. $182,000 C. $286,000 D. $311,000