Which of the following can a positive analysis accomplish?
a. It can tell an advertising executive what type of ads she ought to order.
b. It can tell us how much the demand for a product will increase.
c. It can tell us if one policy is better than another.
d. It can tell a policy maker what is the best course of action.
b. It can tell us how much the demand for a product will increase.
You might also like to view...
Which of the following occurs when a market is efficient?
A) Producers earn the highest income possible. B) Production costs equal total benefit. C) Consumer surplus equals producer surplus. D) Scarce resources are used to produce the goods and services that people value most highly. E) Every consumer has all of the good or service he or she wants.
If the income elasticity of demand for good A was 3.9 and the income elasticity of demand for B was 0.2: a. Both good A and good B are normal
b. Both good A and good B are inferior. c. Good A is normal and good B is inferior. d. Good A is inferior and good B is normal.
All of the following are characteristics of a perfectly competitive market, except one. Which is the exception?
a. a large number of sellers b. a standardized product c. no barriers to entry d. sellers can easily exit the market e. an intensive rivalry among the sellers
Which of following is NOT true of the equilibrium price?
A. Sellers who are willing to accept the equilibrium price can sell what they produce. B. It is fair in the sense that everyone can afford basic goods and services. C. It measures the value of the last unit sold to consumers. D. Buyers who are willing to pay the equilibrium price can acquire the good.