The textbook cautions against speaking of "the people" as wanting a particular good
A) because it is not clear in what sense groups as distinct from individuals can ever have wants.
B) because people rarely know what they themselves really want.
C) because the wants of the people are relevant only in a democracy.
D) because assertions about "the people" confuse economics with politics.
E) unless the majority has clearly voted for it.
A
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Positive economic analysis _____
a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about "what ought to be"
Picture a competitive market with the usual upsloping supply curve and downsloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and:
A. Quantity supplied will increase B. Quantity supplied will decrease C. Quantity demanded will increase D. Demand will decrease