Which of the following statements is true?
A) Positive economics deals with issues that are subjective.
B) Normative statements depend on personal preferences.
C) Positive economics recommends what people ought to do.
D) Normative economic statements can be confirmed or disproven.
B
You might also like to view...
Suppose a worker gets a weekly check equal to $1,000 from a risk-free investment, has 60 hours of weekly leisure that can be devoted to work and can earn a wage of $40 per hour. a. Illustrate this worker's budget constraint, with weekly leisure hours on the horizontal and weekly consumption (in dollars) on the vertical. b Illustrate what happens to this worker's budget constraint when the weekly investment check increases to $1,500. c. Illustrate what happens to this worker's budget constraint when instead the wage increases to $50 per hour. d. Suppose the worker can hire help at $20 per hour, and each hour of help adds a half an hour to his available leisure. Will the budget constraint described in (a) change?
What will be an ideal response?
Refer to Figure 4-4. At the equilibrium price of $15 consumers are willing to buy 80 pounds of tiger shrimp. Is this an economically efficient quantity?
A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit.
B) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit.
C) Yes, because marginal cost is zero at the 80th unit.
D) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost.