Question

2) A negative value for the cross elasticity of demand between two goods indicates that
A) each good is price inelastic.
B) the goods are substitutes.
C) one of the goods is normal and the other is inferior.
D) the goods are complements

4) Marginal benefit is the   benefit    one more unit of the good and    of the good increases.
A) of producing; decreases as production
B) of producing; increases as production
C) from consuming; increases as consumption
D) from consuming; decreases as consumption

6) Mark Zuckerberg believes everyone in the world should have Internet access.
A) This is a normative statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit.
B) This is a normative statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost.
C) This is a positive statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit.
D) This is a positive statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost.
15) An example of a question that might be explored in microeconomics is to determine
A) the number of workers employed by Intel.
(7 B) why the U.S. economy has grown more rapidly than the Japanese economy. savings by the household sector.
D) the total employment within the U.S. economy.
16) The rights of an owner to use and exchange property are
A) money rights.
B) property rights.
C) capitalist rights.
D) socialist rights.

Answer 1

2.

Since there is an inverse relationship between price of one good and quantity demanded of its complement good.

Hence a negative value for the cross elasticity of demand between two goods indicates that the goods are complements.

Hence option D is the correct answer.

4.

Since marginal benefit can be defined, as the additional benefit received by the consumers by consuming an additional unit of good.

Hence it can be said that Marginal benefit is the benefit from consuming one more unit of the good and increases as consumption of the good increases.

Hence option C is the correct answer.

6.

The normative economics Statement is based on the ideological, opinion and value judgments. Its main objective is to summarize people's desire to various economic developments and situations by asking or saying that what should happen or what ought to be.

Hence when Mark Zuckerberg believes everyone in the world should have Internet access, then this is a normative statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit.

Hence option A is the correct answer.

15.

Since micro economics deals with the behaviour of small unit like an individual, a firm and a company etc. It means it studies small or single unit behaviour.

Hence the statement “the number of workers employed by Intel” is example of microeconomics because it studies the behaviour of a single firm Intel.

Hence option A is the correct answer.