Normative economics deals with
a. how the economy actually works
b. how a change in government budgets affects the price level
c. how prices are determined in specific markets
d. value judgments
e. the historical growth of an economy
D
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Refer to the scenario above. Which of the following is the optimum choice?
A) Apartment Very Close B) Apartment Close C) Apartment Far D) Apartment Very Far
Which one of the following is true of a market for used cars?
A. A consumer typically overestimates the probability of getting a lemon (low-quality car). B. As buyers become more pessimistic about their chances of buying a high-quality car, the price of used cars (both low-quality and high-quality) decreases. C. There is a public information problem. D. The willingness to pay is less than the willingness to accept.