which of the following cases is the assumption most reasonable? O a. To address the impact of taxes on income distribution, an economist assumes that everyone earns the same incom Ob. To estimate the speed at which a beach ball falls, a physicist assumes that it falls in a vacuum. c. To address the benefits of trade, an economist assumes that there are two people and two goods. Od. To address the impact of money growth on inflation, an economist assumes that money is strictly coins. Hide Feedback Correct
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- Briefly (1-2 sentences) explain whether the following statement is positive or normative and why. "An increase of 2% in the amount of money printed by the government leads to a 1.5% inflation rate."Reza says "inflation is being caused by excessive demand." Iman states that "inflation is being caused by supply chain problems." We can conclude that Multiple Choice Both statements are normative Reza's statement is positive, and iman's is positive Iman's statement is positive, but Reza's is normative Reza' statement is positive, but Iman's is normative.The basic difference between macroeconomics and microeconomics is: Group of answer choices microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade
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- Economics Suppose that there are drastic technological improvements in shoe production at Home such that shoe factories can operate almost completely with computer-aided machines.Consider the following data for the Home country: Computers: Sales revenue = ?c?? = 100 Payments to labor = ??? = 50 Payments to capital = ??? = 50 Percentage decrease in the price = ∆??⁄?? = 0% Shoes: Sales revenue = ???? = 100 Payments to labor = ??? = 5 Payments to capital = ??? = 95 Percentage increase in the price = ∆??⁄?? = 50% a. Which industry is capital intensive? Is this a realistic scenario (i.e., are some industries capital-intensive in some countries and labor- intensive in others)?b. Given the percentage changes in output prices above, calculate the percentage change in the rental on capital.c. How does the magnitude of this change compare with that of labor?d. Which factor gains in real terms, and which factor loses?18. The Goal of is to promote price stability, full employment, and economic growth.Define economics in terms of wealth
- From the economist’s point of view the term needs is objectively indefinable." Your instructor disagrees. The fact that we talk about poverty and unemployment rates in economics would contradict Miller's statement. Food, shelter and clothing are considered basic needs. But what is needed to live in Southeastern Michigan in the 21st Century? For example, would you consider a car to be a necessity?In the labor market, workers would like to receive higher wages and firms would like to pay lower wages. a. Suppose that workers succeed in having a minimum wage established above the equilibrium wage. What will happen to the number of workers employed when compared to the oriĝinal equilibrium? Explain. · b. Suppose that firms succeed in having a maxi-- mum wage established below the equilibrium wage. What will happen to the number of workers employed compared to the original equilibrium? Explain. What wage maximizes the number of workers employed? Why? C.What is the impact on the labour market due to a reduction in income tax rate? Select one: a. labour supply shifts to the left; wage rate increases and level of employment is lower a. labour supply shifts to the left; wage rate increases and level of employment is lower b. labour demand shifts to the right; wage rate increases and level of employment increases b. labour demand shifts to the right; wage rate increases and level of employment increases c. labour supply shifts to the right; wage rate decreases and level of employment is higher c. labour supply shifts to the right; wage rate decreases and level of employment is higher d. labour demand shifts to the left; wage rate decreases and level of employment decreases