What relates positive economics to normative economics?
A. The science of economics
B. The art of economics
C. Macroeconomics
D. Microeconomics
Answer: B
You might also like to view...
Government intervention becomes necessary when self-interest leads to
a. increased profits. b. laissez-faire. c. the undermining of competition. d. the law of diminishing returns.
A firm should shut down in the short run if it s AVC is less than the price it receives per unit of the good.
Answer the following statement true (T) or false (F)
Suppose the United States steps up efforts to combat drug trafficking and, with the aid of the Colombian military, destroys a significant percentage of cocaine crops. Predict the impact of increased drug interdiction on the market for cocaine in Los Angeles
a. The supply of cocaine will increase causing the price of cocaine to increase. b. The demand for cocaine will increase causing the price of cocaine to increase. c. The supply of cocaine will decrease causing the price of cocaine to increase. d. There will be a movement up along the supply curve of cocaine.
Which of the following is not an accurate description of the point at which the labor supply and labor demand curves meet?
a. The point at which the market for labor has cleared b. The real wage at which the quantity of labor demanded is equal to the quantity of labor supplied c. The point at which there is no frictional unemployment d. The point at which there is no unemployment e. The wage at which the number of workers firms want to hire is equal to the number of people who want jobs