5/6/2023 0 Comments Ockham capital![]() ![]() Given the fact that the economy is inefficient, how much and what type of government intervention should be used to improve the efficiency of the economy? Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce? How can the economy improve technology so as to shift the production possibility frontier up and to the right? NOT B to D The economic problem can best be stated as. (origin arching over to top right) According to Figure 2.4, a decrease in unemployment may be represented by the movement from. Which of the curves has a slope that is positive and decreasing? Panel B This is an example of the.įallacy of composition. ![]() However many students make the same decision, and now the computer lab becomes very crowded at 2:00 p.m. To avoid the crowds, you start going to the computer lab one hour earlier every day. zero You know that the computer lab at school gets very crowded at about 3:00 p.m. This argument is motivated by concerns over.Įquity. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. There is a possibility that a national sales tax will be implemented. This statement is an example of.Ĭeteris paribus fallacy. Hence, we know what the next party in control will do. Whenever the Democrats gain control of the Congress, spending on social programs increases whenever Republicans gain control of the Congress, spending on defense increases. This statement is best described as.Īn implication of an efficient market. Health insurance should be provided to every citizen in a wealthy nation such as the United States. The statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of. Make choices and decisions in pursuit of self-interest. Make choices and decisions in pursuit of self-interest.ĭo not understand that resources are scarce. The economic assumption of rational choice is based on the expectation that individuals: The process of collecting data on minimum wage and teenage unemployment levels is an example of.ĭescriptive economics. slope of the production possibility frontier. Transformation of resources into a form that is useful to people. Process of using resources to produce new capital. Slope of the production possibility frontier.ĭollar value of the best forgone alternative. Consumption The marginal rate of transformation is the. The process by which resources are transformed into useful forms is.Īllocation. if the value of the resulting gains exceeds the value of the resulting losses. If the value of the resulting gains is less than the value of the resulting losses. If the value of the resulting gains exactly equals the value of the resulting losses. ![]() If the value of the resulting gains exceeds the value of the resulting losses. A change in economic output is potentially efficient. ![]()
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