Contemporary Labor Economics
11th Edition
ISBN: 9781259290602
Author: Campbell R. McConnell, Stanley L. Brue, David Macpherson
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1QS
To determine
Reason how economics become the science of choices.
Expert Solution & Answer
Explanation of Solution
Economics is the study of scarcity and how individuals and the society deal with the fact that there are only limited resources available to unlimited human needs and wants. It is a broad subject that deals with how people make choices or the behavior of people since the problem of scarcity exists.
Suppose purchasing of goods at a given price depends on the choice of each individual, economics focuses on the variables that influence their decision making, which include price of the good, price and availability of alternatives, and so on. If there is no choice, then economics becomes irrelevant.
In labor market, there is scarcity related to the working time and leisure time, so that workers decide how much time they have to work or spend for leisure. It depends on the
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