Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 1, Problem 10P
To determine
(a)
Distinction between selfishness and self-interest.
To determine
(b)
Effects of inaction.
To determine
(c)
Difficulty in observing and predicting in economics as compared to chemistry.
To determine
(d)
Reasons that leads to an economistobserving group behavior rather than individual behavior.
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Students have asked these similar questions
A). List the Ten Principles of Economics (just the titles). Group them in three categories: (i). How people make
decisions, (ii). How people interact, and (iii). How the economy as a whole works.
B). Define opportunity cost. Be precise with the words used.
C). Draw a Circular Flow diagram.
Q.4
Microeconomics
How incentives affect people’s behavior.
The question: Does the seat belt law make people safer? You might talk about the role of incentives.
The word "safer" meaning more safe is correct. In the most general terms, an incentive is anything that motivates a person to do something. When we're talking about economics, the definition becomes a bit narrower: Economic incentives are financial motivations for people to take certain actions. However, the discussion is focused on seat belt law and what are incentives surrounding it.
Tim Geithner, a former V. S. Treasury Secretary, has said, "The recession that began in late 2007 was
extraordinary severe. But the actions we took at its height to stimulate the economy helped arrest the free fall.
preventing an even deeper collapse and putting the economy on the road to recovery." Which two of the three
principles of economy-wide interaction are at work in this statement?
Knowledge Booster
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