The study of the choices people make as they cope with scarcity b. Minimum wage law b. Due to increased sales, a company is considering building three new distribution centers (DCs) to serve four regional sales areas. c. the scientific meth... A friend of yours has an interview with an economics consulting firm and has been asked to discuss a microeconomics topic. Labor unions c. Life Expectancy d. Infant mortality. The Methods of Economics The Art of Building Economic Models Assumptions and Conclusions The Four-Step Process Math, Jargon, and Other Concerns . The system that a society chooses reflects the philosophical and political ideas on which that society is founded. The goal of an economist who formulates new theories is to a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world... Economists, like mathematicians, physicists, and biologists, a. make use of the scientific method. Why do rural areas have typically calmer and nicer people than cities where you find a mix of professionals and difficult people? Briefly describe the definition of socialism as applied in economics. d) exists because of scarcity. "When the cost of producing a unit of a good falls because the firm uses specialized resources to produce a range of goods and services" is the definition of A. economic efficiency. What they're saying is, it's bad if you're money is worth more. Explain. B. economies of... "When the cost of producing a unit of a good falls as its output rate increases" is the definition of A. economic efficiency. a. C. pricing adopted by a b... What is the difference between microeconomics and macroeconomics and what is used more in society now? Why do we need money as a medium of exchange? If your 2019 return was not on file or was not processed when the IRS was issuing the second Economic Impact Payment, legislation did not allow us to use the 2018 return like we did for the first payment. Scarcity A situation in which the Most importantly, economics provides the tools to solve those puzzles. Later, as civilizations developed, economies based on production by social class emerged, such as feudalism and slavery. based on subjective or value judgements. Which of the following is the best definition of economics? Levels below 80% are usually interpreted as showing "slack" in the economy, which might increase the likelihood of a recession. A professor of Econometrics course offers tickets for some students of his class to attend a Stata workshop. Its primary areas of study are recurrent economic cycles and broad economic growth and development. Segments of society band together to share these functions. Note that socialism as an economic system can and does occur under various forms of government, from the Democratic Socialism of the Nordic countries to more authoritarian strands found elsewhere. Using a basket that is representative of the goods and services in the economy, the CPI compares the price changes month after month and year after year. This report is one of the more important economic indicators available, and its release can increase volatility in equity, fixed income, and forex markets. The primary purpose of economics is to understand how people make A. goods and services. Of the three fundamental questions, the "distribution" question has to do with: A. who will receive the output. In a few simple sentences, define economics. PV = 2. Trade-offs force society to make choices, particularly when answering the following three fundamental questions: A. In the economics and antitrust literatures price-matching guarantees have a bad name. Federal Reserve. Economics is the study of how A. people make money. b. the study of exchange under conditions of uncertainty. Economics is also the study of people (as consumers) making choices about which products and goods to buy. Define the term "propaganda" from an economic point of view. The study of external costs is a major concern of: A. international economics B. environmental economics. In Micro Economics, what is the definition and description between "Capital" and "Labor," and what impact do they have on Production Technologies? We, as families, are forced to deal with it. Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. Actively scan device characteristics for identification. Provide a forecast of how these economic variables like economic growth, inflation, unemployment rate, etc. Bureau of Labor Statistics. b. try to address their subject with a scientist's objectivity. Describe how money and resources are exchanged in the resource market, indicating who gets the resources and who gets the income. True or false? economics, economics in church history, and the economic history of the United States. These roles (workers, resource owners, capitalists, and entrepreneurs) represent functions in the capitalist economy and not separate or mutually exclusive classes of people. What is that obstacle? Economists employ many different methods of research from logical deduction to pure data mining. c) free-enterprise economics. c. how people make money. Economics is the study of: a) Production methods, b) How society manages its scarce resources, c) How households decide who performs which tasks, d) The interaction of business and government. Carefully explain your answer. Test your understanding with practice problems and step-by-step solutions. There are many competing, conflicting, or sometimes complementary theories and schools of thought within economics. Microeconomics tries to explain how and why different goods are valued differently, how individuals make financial decisions, and how individuals best trade, coordinate, and cooperate with one another. Marx, Smith, Ricardo, etc.) Develop and improve products. b) Economists study the management of scarce resources. d. desire for the social good. What are some of the problems that can be created by large price swings? Which sentence best defines economics? Do you agree? It's part of a nutty religious superstition that all economic goods come from the state inflating the supply of money and credit. You can learn more about the standards we follow in producing accurate, unbiased content in our. Autonomous investment = R300 million. "Thomas Carlyle." b. a desire for meditative contemplation. a... Jeremy Bentham argued that every act was morally valuable to the extent that is resulted in happiness. Models are used to add complexity to a simple world. Give an example. Theory and observation are important in econ... Economists face an obstacle that many other scientists do not face. Define market activities. C. economies of scope. What is the economic perspective, or more easily stated, what governs the economic way of thinking? Profit maximization. b) percentages. Welfare economics focuses on finding the optimal allocation of economic resources, goods, and income to best improve the overall good of society. What does it impact? Aggregate macroeconomic phenomena are obviously and literally just the sum total of microeconomic phenomena. b. How would a person apply and use behavioral economics if you were a small business owner? I'm majoring in economics and I'm on a class about what economist do professionally speaking. The two laws in Economics one never should violate are the principles of _____ and _____. "Consumer Price Index." Garrett Hardin b). All of the following topics fall within the study of microeconomics except a. the impact of cigarette taxes on the smoking behavior of teenagers. a. Refer to the figure below, the equilibrium price in the market before the tax is imposed is: a. In relative comparison analysis, the adjustment values are expressed in terms of: a) yen. What to produce? In a competitive market, no single producer can influence the market price because: a. Give examples. What is the difference between classical and neoclassical economics? In capitalism, workers are hired in return for wages, owners of land and natural resources are paid rents or royalties for the use of the resources, and the owners of previously created wealth are paid interest to forgo the use of some of their wealth so that the entrepreneurs can borrow it to pay wages and rents and purchase tools for hired workers to use. As scientists, economists do all of the following except: a. devise theories about how the world works b. make simplifying assumptions c. prefer experiments in the lab over real-world observations... Economics is the Study of [{Blank}]. Describe a country's gross domestic product (GDP), how it is defined, and how it is calculated. Economics is the study of how (a) preferences are determined. A(n) is defined as a significant decline in economic activity spread across the economy, lasting more than a few months. What is the equi-marginal principle? Think about the following news items. What are its characteristic features? … Explain whether it is more important for U.S. firms to help our domestic economy or the economies of foreign countries. Which of the following is a decision that economists study? When people's wants exceed their economic resources, then {Blank} exists. The expanding domain of economics in the social sciences has been described as economic imperialism. (b) a flow, and the federal budget deficit is a flow. Which of the following is a microeconomic question? Economics The study of choice under conditions of scarcity. Monetarists are a branch of Keynesian economics that argue that stable monetary policy is the best course for managing the economy, and otherwise often have generally favorable views on free markets as the best way to allocate resources. Why is the scientific method important in economics? d. the... What relationship did the Scientific Revolution have with economics? Get the answer of: What is Economic Planning? Economics is concerned with the production and distribution of products and resources. What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories? The Economist's Dictionary of Economics defines microeconomics as "the study of economics at the level of individual consumers, groups of consumers, or firms" noting that "the general concern of microeconomics is the efficient allocation of scarce resources between alternative uses but more specifically it involves the determination of price through the … The English word that comes from the Greek word for "one who manages a household" is: a) market, b) consumer, c) producer, d) economy. Economists believe that people acting in their own self interest: a) prevent the economy from functioning properly. Sometimes people not only work to full fill their self-interest. The building blocks of economics are the studies of labor and trade. It's good if it's worth less and less all the time. Describe the definition of economics in simple words. Which of the following is consistent with an increase in the price level? What are the most fundamental concepts in economics? c) is the same as monetary cost. d. exogenous factors. Other branches of economic thought emphasize empiricism, rather than formal logic—specifically, logical positivist methods, which attempt to use the procedural observations and falsifiable tests associated with the natural sciences. and How? A) True B) False. What are the top five things to know about economics? (Answer through the understanding of the economics way of thinking). c. a social science, like sociology or psychology. The basis of property received as an inheritance is generally equal to the fair market value at the date of death. b. the government of a nation, city, or county.... Economists view (blank) as the ultimate scarce resource. Assume that the above table is common knowledge to both the orchard and beekeeper, that bargaining is costless, and that there are no other orchards or beehive owners. b. a. Economics is the study of how humans make decisions in the face of scarcity. Indicate whether the statement is true or false, Performance is the end result of activity. Communism is a form of command economy, whereby nearly all economic activity is centralized, and through the coordination of state-sponsored central planners. c. how households decide who performs which tasks. ECON EQUIV = 4. B. how to run a business most profitably. Opportunity cost: a) applies only to consumption decisions. Define the winner effect in regards to behavioral economics. Are they worth that kind of money? a. c) Doll... Free market economics stimulate greater economic growth, whereas state-directed economics stifle growth. Microeconomics analyzes basic elements in the economy, including individual agents … b. how to make good choices given the mismatch between resources and human wants. The information below relates to a closed economy without a government: Autonomous consumption = R285 million. What is Economics? (a) allocation (b) marginal (c) equity (d) optimal. Scarcity means that human wants for goods, services and resources exceed what is available. Education, Healthcare, etc)? These reports are usually published periodically by governmental agencies or private organizations, and they often have a considerable effect on stocks, fixed income, and forex markets when they are released. Why can sports teams spike their prices up on major event dates? a. In which social issues are you most interested? That book contains three main thoughts. People can be inconsistent over time. What are the differences between the four types of economic evaluations and their differences with the other two (budget impact analysis (BIA) and the cost of illness (COI) studies)? In economics history, what are the main ideas and contributions of the Austrian School? Why is your friend from Russia stunned by all the shoes available at your local shoe store? First, economics is a social science, so it seeks to explain something about society. Macroeconomics studies an overall economy on both a national and international level, using highly aggregated economic data and variables to model the economy. When it is a means of paying for goods and services and discharging debts, money is referred to as what? Here is some data about the Burger Princess for December 31, 2017: Revenue from sales = $300,000 Salary cost = $150,000 Utility cost = $60,000 Advertising cost = $25,000 Value of owner Bill Conner'... How do you think economics relates to you in your own life? And … How are sports and economics related? Question 15. Answer: Market activities are those activities for which the people, who perform these activities, are paid or have profits such as production of goods and services e. velocity of money. After paying $1.50, you are allowed to open a newspaper vending machine freely (i.e. b. how society manages its scarce resources. Do you believe corporations pose a risk to the national economy and to domestic employees based upon external shocks to the economy as well as government regulations and Obamacare? (Answer through the understanding of the economics way of thinking). State true or false and justify your answer: Economics is the study of choices. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. (d) people make choices. A) asset manageme... Is the US government's debt of $26 trillion a burden that your children will have to pay? Explain the difference between the study of microeconomics and the study of macroeconomics. Describe this in terms o... What is The Theory of the Firm in Economics? In each of the following, indicate which of the four essential economic activities is taking place. C. ho... What are the economical differences between India and East Asian countries, such as China? A) Economic accounting B) Microeconomics C) Blue Chip econometrics D) Macroeconomics. Engineers at a national research laboratory built a prototype, automobile that could be driven 180 miles on a single gallon of gasoline. Describe empirical economics as used in business. Financial management. PW = 5. a) 10% b) 40% c) 85% d) 100%. a). Feudalism was a system where a class of nobility, known as lords, owned all of the lands and leased out small parcels to peasants to farm, with peasants handing over much of their production to the lord. Which of the following best explains why the game of economics is about setting goals as much as it is about making allocation decisions? How do you think that economics might help you understand these issues? True or false? How will you stay up to date in your personal understanding of economic policies and principles? a. Also, because the report's data is based on the previous month sales, it is a timely indicator. Answered: Jan 07, 2018. ________ is the collection of specific standards that describe behaviors that are either forbidden or required. Marginal propensity to consume = 0.4. The economy is a. the mechanism through which the use of labor, land, and other resources is organized to satisfy the demands of people in a society. C. choices. Gross domestic product 2. b. the role of Microsoft's market power in the pric... What is the most pressing issue, with regards to Econ Development (e.g. This system of market prices, profit, and loss as the selection mechanism as to who will decide how resources are allocated for production is what defines a capitalist economy. The United States and much of the developed world today can be described as broadly capitalist market economies. b. Accessed Oct. 4, 2019. C. For whom is the output to be pro... How does behavioral economics differ from traditional economics? B. psychology influences preferences. c. a positive statement. According to the five economic principles, it makes good economic sense to [{... Why do economists pay more attention to national economies than to state or provincial economies? b. supply and demand for a firm. Define the terms opportunity cost, scarcity, and resources. Which is the total effect of the distribution... What are the uses of microeconomics in business decision making? b. how many less we would buy if the price rises. A. The difference between the benefits and costs of an activity, b. What is meant by the term "informal economy"? Likewise, potential contractions may be imminent if significant decreases occur. Microeconomics' topics range from the dynamics of supply and demand to the efficiency and costs associated with producing goods and services; they also include how labor is divided and allocated; how business firms are organized and function; and how people approach uncertainty, risk, and strategic game theory. Economics is in one way or another a good discipline. These might include any strategic economic functions that effect all citizens. Agree or disagree with this statement and explain your reasoning. The knowledge regarding how the world works and how to produce b. In regards to economics, explain the term: payoff matrix. What are the economic benefits of British Columbia's Hydro Site C dam project? Provide a brief explanation. Why do you bother wrapping your friend's gift knowing that the wrapping paper is going to be thrown away? Societies have organized their resources in many different ways through history, deciding how to use available means to achieve individual and common ends. What are the two major contexts for economic activity? What does it measure? State the Coase Theorem. Some members want to sell energy drinks at a football game, but others want to organize a car wash in the school parking lot. e. the scientific method. C. yield to maturity. Ask your economics question here, and our economics experts will answer it for free. Production decisions are made through a collective decision making process, and within the economy some but not all economic functions are shared by all. How is economics relevant to the United States health care system? Anthropology d. how government controls the mone... Adam Smith believed that the basic motivation of human beings was: a. self-interest. Supply Schedule IV. In primitive agrarian societies, people tend to self-produce all of their needs and wants at the level of the household or tribe. Define: a. Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing. Investopedia requires writers to use primary sources to support their work. Describe in detail an example of how each of these concepts have affected or currently affect your life. Can it change the ways economies operate? These are often paid for through income or use taxes levied on the remaining tactically independent economic functions (individual citizens, independent businesses, foreign trade partners, etc). Autonomous consumption = R285 million. Bureau of Economic Analysis. Shouldn't they apply to everyone? b. allocating scarce resources to satisfy unlimited wants. Two of the most common in macroeconomics are monetarist and Keynesian. A. simple interest rate. People care about the fairness of economic outcomes. And why? However these two branches of economics use very different theories, models, and research methods, which sometimes appear to conflict with each other. B) How can these objectives be met? Earn Transferable Credit & Get your Degree. C. a hypothetical p... Why do managers need the knowledge of economics in business? The [{Blank}] assumes that people link very specific product attributes to terminal values. b) paired data analysis. Consumer theory, production theory, and market price equilibrium are all areas of analysis in a. Macroeconomics b. Microeconomics. Socialism is a form of cooperative production economy. a. b) applies only to production decisions. Using economic concepts, explain why people buy the things they buy. This economic system is defined by very little division of labor and resulting low productivity, a high degree of vertical integration of production processes within the household or village for what goods are produced, and relationship based reciprocal exchange within and between families or tribes rather than market transactions. The market economy is a special kind of economy in which the economic decisions and ultimately the market is guided by self-interests and the prices. Economics is the science of choice, at a time of enormous change, opportunity, and challenge. The term economic system refers to the way in which a society organizes the production and distribution of good and services. Since true experiments may be difficult, impossible, or unethical to use in economics, empirical economists mostly rely on simplifying assumptions and retroactive data analysis. It represents the total market value of all finished goods and services produced in a country in a given year or another period (the Bureau of Economic Analysis issues a regular report during the latter part of each month). Many investors, analysts, and traders don't actually focus on the final annual GDP report, but rather on the two reports issued a few months before: the advance GDP report and the preliminary report. will impact the bank in the near future. Explain. School band members need to raise money for new uniforms. Economics is especially concerned with efficiency in production and exchange and uses models and assumptions to understand how to create incentives and policies that will maximize efficiency. Ans. In 2012, Israeli inventor Izhar Gafni completed his first prototype of a bicycle made completely from recycled materials, mainly cardboard. What are the principles of economics? It also demonstrates trade is most efficient when coordinated through a medium of exchange, or money. B. the humanitarian impact of a business. D. how... Might it ever make sense to require someone to pay in order to take a job? Check out a sample Q&A here. a. The industrial production report, released monthly by the Federal Reserve, reports on the changes in the production of factories, mines, and utilities in the U.S. One of the closely watched measures included in this report is the capacity utilization ratio, which estimates the portion of productive capacity that is being used rather than standing idle in the economy. It is preferable for a country to see increasing values of production and capacity utilization at high levels. Explain the following. An increase in the number of police on inner-city streets will reduce the... Use the Ricardian Model of Two Goods to show that the wage in Home will be higher than in Foreign if the former has absolute advantages in producing both goods. Measure content performance. b) welfare economics. For example, strong employment data could cause a currency to appreciate if the country has recently been through economic troubles because the growth could be a sign of economic health and recovery. Topics studied include foreign trade, government fiscal and monetary policy, unemployment rates, the level of inflation and interest rates, the growth of total production output as reflected by changes in the Gross Domestic Product (GDP), and business cycles that result in expansions, booms, recessions, and depressions. Economics is the study of: a. the financial concerns of businesses and individuals b. choice in the face of limited resources c. inflation, interest rates, and the stock market d. demand and supply. Why do we buy from China? Economics focuses on the actions of human beings, based on assumptions that humans act with rational behavior, seeking the most optimal level of benefit or utility. Explain, giving hypothetical or a... For an economist, the cost of something is: a. the amount of money you paid for it. Describe the following concepts. What are the "three arrows" of Abenomics? B. how prices are determined within individual markets. Accessed October 4, 2019. Explain what do economists mean when they say "ceteris paribus". * See Answer *Response times vary by subject and question complexity. b. a purely mathematical science. When the buyer is more knowledgeable than the seller, there is a(n): A. c. how to increase the productivity... State true or false and justify your answer: Economics is the study of how fairly goods and services are distributed within society. Suppose Yamaha and Hero must decide whether to make a new style of side-impact airbags standard equipment on all models. The company had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of t... A) What are the objectives of production? Conversely, in an overheated economy, high employment can also lead to inflation, which in this situation could move the currency downward. Each of these requires 12 \text{ kg} of epoxy, purchased in 6 \text{ kg} barrels at \ 170 each, with a f... Indicate if the following is part of the current GDP. What is the magnitude of causation between X=2 and Y=3? economics, economics in church history, and the economic history of the United States. Capitalism-Free Enterprise. The student will also learn how government is involved in the economy and look at modern economic challenges.

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