Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 1, Problem 1.1.11PA
To determine
Decision making process for the success of business and government.
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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.
(a) Briefly discuss the Galbraith hypothesis in microeconomics.
"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?
Chapter 1 Solutions
Microeconomics (6th Edition)
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. 1.4.4PA
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