Which of the following is true?
I. A rational choice is made on the margin.
Ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
Iii. Economists try to understand how the economic world works by testing normative statements.
A)i and ii
B)only ii
C)only iii
D)only i
E)i and iii

Question

Quizplus · Accepted Answer

A rational choice is made on the margin, meaning decisions are made by comparing additional benefits and costs. The other statements are incorrect: microeconomics studies individual and business decisions, while macroeconomics studies national and global economies; economists test positive statements, not normative ones.

Which of the Following Is True