How does macroeconomics differ from microeconomics?
A. The study of the opportunity cost of nations versus the opportunity cost of individuals
B. The underlying principles
C. The use of abstractions and models
D. The use of aggregate indicators over market resource allocation
Answer: D
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the ________
A) minimum supply-price of the second DVD is $18 B) price is $18 a DVD C) opportunity cost of the second DVD is $22 D) value of the second DVD is $20
Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?
A. A profit-maximizing firm may produce any output level at which P < LRAC. B. Every firm produces at an output level at which MC = LRAC. C. There is no entry or exit from the industry. D. No firm earns an economic profit.
The demand schedule is a price list for a fixed basket of consumer goods following a particular format
a. True b. False Indicate whether the statement is true or false
A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect
a. to be unable to predict the wage difference between Illinois and New York. b. to make a lower wage in New York. c. to make a lower wage in Illinois. d. wages in Illinois and New York to be identical.