Positive economic analysis
a. involves the study of firms with positive profits.
b. involves how resources are actually used in an economy.
c. involves judgments on how resources should be used in an economy.
d. is usually thought to be a waste of time.
b
You might also like to view...
Which of the following statements is true about profit-related income? a. It results from hiring workers below the marginal contributions they make to the enterprise
b. It consists of rents derived from the sole ownership of capital. c. It is the reward for undertaking the uncertainties of enterpreneurship. d. It equals the entrepreneur's opportunity costs of labor and money capital. e. It is the same as wage-related rents, except it is the entrepreneur who gets it.
The economic concept of scarcity refers to the fact that:
A. limited resources require economies to make choices among production alternatives. B. income must be redistributed through taxation in order to address income disparity. C. the United States will always have a battle to fight hunger. D. resources are often wasted and shortages are often the result.