Question

1. political discourse (talk)

a. is usually uncommon in controversies over economic policy.
b. tends to encourage accurate understanding of the views of opponents.
c. is intended to settle disagreements through scrupulous rational discussion.
d. is evident in the continuing disputes over the proper use of markets in economies.

1. a problem with the concepts of positive and normative economics is that

a. it is sometimes hard to distinguish between positive and normative statements.
b. economists rarely, if ever, make normative statements about the economy.
c. after much research economists still do not know how to make normative statements.
d. all of the above

1. trends and tendencies

a. are the relationships that comprise most scientific laws.
b. are relationships between variables that are true without exceptions.
c. denote social changes that are unrelated to economic forces within markets.
d. are the subject of the knowledge that economists use to understand social problems.

1. a common element in many forms of unfair competition is

a. the infliction of damage to the business of some competitors through efficiency gains.
b. the violation of important rights to intellectual property.
c. large inequalities in the profits earned by competing firms in a market.
d. all of the above

1. business firms engage in unfair competition under u.s. law

a. whenever their pricing causes the elimination of competitors.
b. when they temporarily sell goods at unprofitable prices to eliminate competitors.
c. whenever they increase the prices they charge on goods for which they own a patent.
d. by practicing non - price competition that interferes with markets during emergencies.

1. in which of the following industrial sectors are we most likely to find aggressive marketing competition?

a. those industries manufacturing producer goods such as steel and electric motors.
b. those industries selling consumer goods such as shampoo and razor blades.
c. those industries most prone to the practice of rent seeking.
d. the industries in the service sector such as education and health care.

1. market goods

a. typically exhibit a high degree of rivalry in consumption.
b. can be exclusively used by one person, who can as a result own them.

Explanation:

1. Political discourse often appears in economic - policy disputes like those over market use. It doesn't necessarily encourage accurate understanding of opponents or settle disagreements rationally.
2. Positive economics deals with facts, normative with value - judgments. Sometimes it's hard to tell them apart. Economists do make normative statements.
3. Trends and tendencies are what economists study to understand social problems. They are not scientific laws or exception - less relationships and are related to economic forces.
4. Unfair competition can involve harming competitors and violating intellectual property rights. Large profit inequalities aren't a defining element of unfair competition.
5. Under U.S. law, selling goods at unprofitable prices temporarily to eliminate competitors is unfair competition. Pricing to eliminate competitors isn't always unfair, and patent - related price increases aren't unfair competition.
6. Consumer goods industries like shampoo and razor blades tend to have more aggressive marketing due to high competition for consumers.
7. Market goods can be exclusively used and owned by one person. Rivalry in consumption is not the main characteristic.

Answer:

1. d
2. a
3. d
4. b
5. b
6. b
7. b