One reason that economists usually engage in ________ economic analysis is because the question of fair division of resources is ________ to decide objectively
A) positive; easy
B) positive; hard
C) normative; easy
D) normative; hard
B
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Refer to Figure 18.1. The opportunity cost of bicycles in Canada is
A) 1/2 of a hang glider. B) 2/3 of a hang glider. C) 2 hang gliders. D) 4 hang gliders.
Which of the following would be considered a "leisure" activity by economists?
A. Mopping the floor at McDonald's for minimum wage B. Mopping your kitchen floor C. Folding sweaters while working at the Gap D. None of these activities would be considered leisure.
Which of the following best defines national income?
a) income received by households less personal taxes b) the before-tax income received by households c) incomes earned by U.S. resource suppliers plus taxes on production and imports d) the market value of the annual output net of consumption of fixed capital
If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen?
A. There will be a shortage of green tea. B. Supply must eventually increase so that the market will come into equilibrium at a price of $17.50. C. Demand must eventually decrease so that the market will come into equilibrium at a price of $17.50. D. The price ceiling will be ineffective and the market will remain in equilibrium.