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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A reason to study economics is to Select one: make money in the stock market. O a. O b. learn a way of thinking. O c. to decide whether to buy a new house O d. get a high paying job.
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.)
is an example of a choice in the self-interest. ,is an example of a choice in the social interest. O A. I buy pizza for lunch; I am collecting funds to help the flood victims O B. Ontario has a very high per capita GDP; We cancelled our trip to India because of the devastating floods OC. I go home on Thanksgiving: I would like to buy a new cellphone O D. It is too cold in Labrador; Louisiana suffered from Hurricane Katrina
2 Which of the following definitions of economics is combining Wealth, Welfare and Problems of Choice? a. Wealth Definition b. Scarcity definition. c. Welfare Definition d. Growth Definition
Which of the following are examples of positive economics? O A. I only. I. A free market in kidneys would end the shortage of kidneys. B. II & III. II. People should not sell organs for profit. C. 1 & IV. III. The United States should not trade with countries with human rights abuses. D. They are all normative statements. IV. Workers pay the majority of corporate taxes in the form of lower wages.
Legislation to protect red-cockaded woodpeckers created incentives that resulted in premature harvesting of trees the woodpeckers like to nest in. This is an example of which of the following pitfalls to avoid in economic thinking? O the fallacy of composition O Association is not causation. O the use of ceteris paribus conditions in economic analysis O Good intentions do not always lead to desirable outcomes.
An economic model based in positive economics should be judged Select one: O A. by its ability to accurately capture and describe the many complex details of the real economy. O B. by the quality and quantity of its underlying assumptions. O C. by the accuracy of its predictions rather than by the accuracy of its assumptions. O D. on its ability to incorporate the idiosyncratic factors that typically characterize human interactions.
2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)
Which of the following would shift an economy's production possibilities curve to the left? Select one: O a. the country discovers a new energy source O b. dramatic increases in economic growth O c. a major increase in the number of people in the labour force O d. an increase in the retirement age O e. the country experiences a major natural disaster affecting its capital goods

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