Normative economics is:
a. based on facts
b. based on value judgments
c. based on the use of the scientific method
d. applicable only to macroeconomics
b. based on value judgments
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Assume that the current market price is below the market clearing level. We would expect:
A) a surplus to accumulate. B) downward pressure on the current market price. C) upward pressure on the current market price. D) lower production during the next time period.
These are the shares of the seven firms in Macland’s sweater industry. Sally’s Sweaters: 36%, Jack’s Sweaters: 24%, Mira’s Sweaters: 2%, Nils’ Sweaters: 8%, Hans’ Sweaters: 3%, Pedro’s Sweaters: 7%, Jules’ Sweaters 20%. What is the HH index?
a. 88 b. 7,744 c. 2,398 d. 10,000
If Social Marginal Cost (SMC) > Price (P) = Buyer's Private Marginal Benefit (MB) = Seller's Private Marginal Cost (MC) = Social Marginal Benefit (SMB), it implies that
A. firms are not maximizing profits. B. the product is oversupplied. C. there is an excess demand for the product. D. the socially optimal amount of the product is supplied.
Which of the following is a reason for economic discrimination to occur?
A) differences in access to education B) differences in gender C) differences in the quality of education D) barriers to entry in higher-paying occupations