EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.1.11PA
To determine
Decision making process for the success of business and government.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
When Paul Samuelson switched from physics to economics, Robert Solow is said to have remarked that the average IQ in
both disciplines went up. A bystander responded that Solow's claim must be wrong because it implies that the average IQ
for academia as a whole (which is a weighted average of the average IQ levels for each discipline) must also have gone
up as a result of the switch, which is clearly impossible.
Was the bystander right?
A) Yes. If the average in both disciplines goes up then the population average must also rise.
B) No. There is not enough information about the average IQ for the population.
C) Yes. The weights may change so that the population average also increases.
D) No. If those in physics had IQs above average and those in economics has IQs below average, then the population
average need not have changed.
"Vernon Smith started a series of experiments to see whether basic predictions of the
standard economic model about markets would prove correct. [...] Basically, the
predictions proved good. A stunning result! Maybe, therefore, it doesn't matter if people
are not like homo oeconomicus; the standard economic model can still work." (quote
shortened, source: Edward Cartwright in his textbook "Behavioral Economics" (3rd
edition, p. 8)).
What kind of criticism of the standard economics model does Cartwright refer to? Explain
why Vernon's findings can be used to support and uphold the standard model of
microeconomics despite unrealistic assumptions?
Explain why Applied Economics is not a field of economics. If Applied Economics is not field of economics, what is its classification as a discipline or field of study?
Chapter 1 Solutions
EBK MACROECONOMICS
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PACh. 1 - Prob. 1.1CTECh. 1 - Prob. 1.2CTE
Knowledge Booster
Similar questions
- (a) Briefly discuss the Galbraith hypothesis in microeconomics.arrow_forwardDaniel Kahneman and the late Amos Tversky are considered to be the founders of modern behavioural economics and finance. In recognition of their work, Kahneman was awarded the Nobel prize in economics in 2002. Reflect on the following points: Are economic agents rational? and What can psychology teach us that will enable us to understand and possibly predict, economic agents’ behaviour? How can “heuristics and biases” have an effect on economic decisions? To what extent is Kahneman’s work relevant to financial decisions?arrow_forwardAccording to Richard Thaler, what two things give economics its reputation as the most powerful social science?arrow_forward
- What are some of the insights gained from taking a fundamental microeconomics course?arrow_forwardIn 2018, the Pew Internet & American Life Project asked 743 teens aged 13 to 17 several questions about their attitudes toward social media. The results showed that 602 say social media makes them feel more connected to what is going on in their friends' lives; 513 say social media helps them interact with a more diverse group of people; and 275 feel pressure to post content that will get a lot of likes and comments. Round your answers to four decimal places. a. Develop a point estimate of the proportion of teens aged 13 to 17 who say social media makes them feel more connected to what is going on in their friends' lives. b. Develop a point estimate of the proportion of teens aged 13 to 17 who say social media helps them interact with a more diverse group of people. c. Develop a point estimate of the proportion of teens aged 13 to 17 who feel pressure to post content that will get a lot of likes and comments.arrow_forwardcan you give me a brief explanation on why this passage is an economic motivator?arrow_forward
- What we can conclude on the journal Methodology of Islamic Economics From Islamic Teachings to Islamic Economics ?arrow_forwardEconomics is a discipline that is divided into two broad branches, which are they?arrow_forwardThe Big Ideas: End of Chapter Problem As Nobel prize winner and New York Times columnist Paul Krugman has noted, the field of economics is a lot like the field of medicine: They are fields where knowledge is limited, and where many cures are quite painful, but where regular people care deeply about the issues. What are some other ways that economics and medicine are alike? Alike It is difficult to run randomized experiments. Charlatans offer useless or damaging remedies for problems. There is lots more to learn. Professionals are well-respected. Answer Bank Not alike Person-on-the-street is over-confident about personal knowledge. Practitioners must be licensed.arrow_forward
- Explain why it is important for an economic modelto be an abstraction from the real world.arrow_forwardWhat are the specific functions of Econometrics in Economics or in Agricultural Economics?arrow_forwardIn 1973, two American scientists, Herbert Boyer and Stanley Cohen produced the first genetically modified organism in human history - a bacterium. Scientific advances quickly followed in their wake. The first genetically engineered animal (a mouse) was developed in 1974 and the first genetically engineered plant (a breed of tobacco) was developed in 1983. Around the same time, in 1980, the US Supreme Court allowed patenting of genetically engineered organisms. These developments let the genie out of the bottle for the seed industry. Noticing the potential to gain a monopoly position in the seed market, biotech companies began purchasing traditional seed producers and developing genetically modified crop seeds in late 80s. They were so successful in acquiring or merging with the traditional seed companies that soon there were only 6 major producers left in the entire seed industry: Monsanto, Bayer, BASF, Dow, DuPont and Syngenta. a. In the market for corn seeds, Monsanto is close to…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning