Econ_11_Prac_Quiz_1

Econ_11_Prac_Quiz_1 - Practice Quiz 1 Econ 11...

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Practice Quiz 1 1 Econ 11 Microeconomics Practice Quiz 1 1. Professor Jones wants to discover why tax rates change as often as they do. He comes up with a model of an economy where tax changes are a rational response to other changes in the economy, such as changes in the unemployment rate or changes in other taxes. His model has not been tested with any real world evidence. Professor Jones is doing: a. normative economics. b. empirical economics. c. economic history. d. theoretical economics. 2. A basic assumption used in most economic theories is that: a. all other things remain the same. b. as price decreases, quantity demanded must decrease. c. what is true for a part of the whole must also be true for the whole. d. whatever goes up must come down. 3. What do economists assume about a firm’s objective? a. It tries to maximize market share. b. It tries to minimize costs. c. It tries to maximize profit. d. It tries to maximize revenue. e. all of the above
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Practice Quiz 1 2 4. What is the labor theory of value ? a. Labor should be paid the value of its marginal product.
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Econ_11_Prac_Quiz_1 - Practice Quiz 1 Econ 11...

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