Which of the following statements is NOT correct?Select one:O a. If poverty was eliminated there would be no reason to study economics.Ob. In large measure, economics is the study of how people make choices.O c. Economics is a behavioral science.O d. Economic analysis can be used to explain how both individuals and societies makedecisions. Rick buys an old Mustang for $3,000, planning to restore and sell the car. He goes on to spend$9,000 restoring the car. At this point, he can sell the car for $10,000. As an alternative, he canspend an additional $3,000 replacing the engine. With a new engine, the car would sell for$13,000. Rick shouldO a. complete the repairs and sell the car for $13,000.O b. be indifferent between (i) selling the car now and (ii) replacing the engine and thenselling it.O c. sell the car now for $10,000.O d. keep the car as it would not be rational to carry out the renovation.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3 Saved According to the rational choice model which of these two events should be valued more by rational consumers: (A) gift of mug valued at $10, (B) finding the mug that you thought was lost, which cost you $10 to purchase. O a) Event A O b) Event B c) Both events should have the same value O d) There is really no way to rationally decide Previous Page Next Page Page 3 of 15 Submit Quiz 15 of 15 questions saved
Which of the following is one of the four economic principles of individual decision making? O Rational people make decisions based on average costs and benefits. O Rational people respond to incentives in predictable ways. The cost of something is the amount of money you pay to get it. O Both b and care correct. O a, b, and c are all correct.
What are economics' two main branches of study? O a. fiscal and monetary policies Ob. normative and positive economics Oc free and closed markets Od. microeconomics and macroeconomics
6. The interaction of individual choices Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O All costs are opportunity costs. O When markets do not achieve efficiency, government intervention can improve overall welfare. There are gains from trade.
Which of the following describes the difference between "scarcity" and "shortage"? O There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. O There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
Economics Select one: O a. is concerned with unlimited wants. O b. is a social science. O c. is concerned with limited resources. O d. All of the above are correct.
Which one is false? Explain why that is false. 1. The production possibilities curve is a simple device for summarizing the possible combinations of output that a society can produce if it employs its resources efficiently. 2. One person has a comparative advantage over another in the production of a good if she or he can produce more of that good than the other person. 3. The Cost-Benefit Principle says that a person should take an action if, and only if, the benefit of that action is at least as great as its cost. 4. Market equilibrium occurs when the quantity buyers demand at the market price is exactly the same as the quantity that sellers offer. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure
Social scientists: want models that loo exactly like the real world O dont like to make predictions O like to build and test theories O don't believe that human behavior is predictable
If you must make a choice about consuming two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is O the difference in the prices of the three options. O two apples and three oranges. O three oranges. O two apples or three oranges, whichever you most prefer.
QUESTION 1 To ensure that trade benefits all parties involved, a, the trade must involve services as well as goods. b. the trade must be voluntary. c. there must be a difference in comparative advantage. d. specialization through training must occur. O e. money must be exchanged. QUESTION 2 When is marginal analysis needed to make a decision? a, when the choice is between doing more or less of something b. when the choice is between doing something and not doing something c. when the choice is between actions with a quantifiable monetary value d. when the choice is between actions that cannot be assigned a monetary value e. when the choice is between doing something and doing the exact opposite
Which one below is FALSE for economic theories or models. Select one: O a. They are generalizations used to give context to our observations. O b. They attempt to establish cause and effect between economic variables. O c. They are built with assumptions and then tested with facts. O d. They always reflect reality.
The branch of economics which studies how households and firms make choices, interact in markets and how government attempts to influence their choices is called:A) macroeconomics.B) microeconomics.C) positive economics.D) normative economics. (Please dont use ai tool.)

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