For each of the following statements, say whether they are True or False,and explain your answer carefully.a) Following one's incentives implies selfishness.b) Wants are limited.c) If economic models cannot predict the next credit crunch then economicshas simply failed.d) If the government imposes a binding minimum price in a market, then theconsumer surplus in that market will increase.e) The existence of inferior goods contradicts the idea that more of a good ispreferred to less.f) As firms (consumers) do not actually tend to model their optimal decisionsas in the supply (demand) analysis typically presented in most basictextbooks, that type of analysis is useless.g) Pareto optimality means that nobody can be made better off, and thus truePareto optimality can only be found when the wealth distribution ischaracterized by perfect equality.h) Lowest price guarantees can only be good for consumers.

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For each of the following statements, say whether they are True or False, and explain your answer carefully. a) Following one's incentives implies selfishness. b) Wants are limited. c) If economic models cannot predict the next credit crunch then economics has simply failed. d) If the government imposes a binding minimum price in a market, then the consumer surplus in that market will increase. e) The existence of inferior goods contradicts the idea that more of a good is

For each of the following statements, say whether they are True or False, and explain your answer carefully. a) Following one's incentives implies selfishness. b) Wants are limited. c) If economic models cannot predict the next credit crunch then economics has simply failed. d) If the government imposes a binding minimum price in a market, then the consumer surplus in that market will increase. e) The existence of inferior goods contradicts the idea that more of a good is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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