If Two Economists Completely Agree About the Magnitude of Employment

question 36

Multiple Choice

If two economists completely agree about the magnitude of employment effects of a proposed change in government policy,but disagree about whether the change is a good idea.The difference in opinion

• A) must be normative in nature
• B) is both positive and normative in nature
• C) is more likely to be normative than positive
• D) is more likely to be positive than normative
• E) would be neither positive nor normative in nature

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Definitions:

Total Revenue

The total amount of money a firm receives from selling its goods or services.

Price Elasticity

The impact of price adjustments on the quantity of a good demanded measured.

Total Expenditures

The total amount of money spent by individuals or firms on goods and services within a specific period.

Price Elasticity

A measure in economics that shows how the quantity demanded of a good or service responds to a change in its price.