Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 5QAP
(a)
To determine
Explain how to decide which college one would attend.
(b)
To determine
Explain did the students have enough knowledge about the economics decision rule.
(c)
To determine
Explain what type of decisions are used to make economics decision rule.
(d)
To determine
Explain the implications for economic analysis if one does not follow the economics decision rule.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Why must economic theories and models be abstract?
Economist Paul Heyne wrote a famous economic principles textbook entitled The Economic Way of Thinking. Based on your studies and reading from Module 1, write a short essay outlining what you understand to be “the economic way of thinking”? What are the key principles and tenets that any educated person should know regarding the science of economics and their applicability in the world today?
What good is economic theory if it can't predict the behavior of a specific individual?
Chapter 1 Solutions
Microeconomics
Ch. 1.1 - Prob. 1LOCh. 1.1 - Prob. 1QCh. 1.1 - Prob. 2QCh. 1.1 - Prob. 3QCh. 1.1 - Prob. 4QCh. 1.1 - Prob. 5QCh. 1.1 - Prob. 6QCh. 1.1 - Prob. 7QCh. 1.1 - Prob. 8QCh. 1.1 - Prob. 9Q
Ch. 1.1 - Prob. 10QCh. 1 - Prob. 1QECh. 1 - Prob. 2QECh. 1 - Prob. 3QECh. 1 - Prob. 4QECh. 1 - Prob. 5QECh. 1 - Prob. 6QECh. 1 - Prob. 7QECh. 1 - Prob. 8QECh. 1 - Prob. 9QECh. 1 - Prob. 10QECh. 1 - Prob. 11QECh. 1 - Prob. 12QECh. 1 - Prob. 13QECh. 1 - Prob. 14QECh. 1 - Prob. 15QECh. 1 - Prob. 16QECh. 1 - Prob. 17QECh. 1 - Prob. 18QECh. 1 - Prob. 1QAPCh. 1 - Prob. 2QAPCh. 1 - Prob. 3QAPCh. 1 - Prob. 4QAPCh. 1 - Prob. 5QAPCh. 1 - Prob. 6QAPCh. 1 - Prob. 1IPCh. 1 - Prob. 2IPCh. 1 - Prob. 3IPCh. 1 - Prob. 4IPCh. 1 - Prob. 5IPCh. 1 - Prob. 6IPCh. 1 - Prob. 7IPCh. 1 - Prob. 8IPCh. 1 - Prob. 9IPCh. 1 - Prob. 10IPCh. 1 - Prob. 11IPCh. 1 - Prob. 12IPCh. 1 - Prob. 13IP
Knowledge Booster
Similar questions
- Herbert Simon, the Novel Prize-winning economist, described the rational model of decision-making in what way?arrow_forwardWhat good is economic theory if it cannot predict the behavior of a specific individual?arrow_forwardEconomist Richard Thaler describes economics as the sum of two parts. What are these two parts?arrow_forward
- How does Homo Economicus influence economic models? Describe an argument against using Homo Economicus as the basis of economic theory.arrow_forwardEconomic behavior is more complex than assumed by conventional economic theory. Political economy explains the functioning of government. Behavioral economics ties psychology into human behavior. Economists assume that individuals make rational decisions. However real people are more complex. Based on what you have learned in your assigned reading, answer the following questions in your initial post: What are the human behaviors economists should observe when creating economic models? Example: people tend to find solutions that are good enough, but not the best solutions. In your responses, comment on at least two of your peers' posts and share example of how non-rational human behavior can change an economic outcome.arrow_forwardWhat are three textbooks definition of economics?arrow_forward
- Which of the following is an INCORRECT statement regarding economic models? An economic model is useful if it predicts well, even if its assumptions are not realistic. An economic model is useful even if it predicts with less than100 percent accuracy. An economic model always includes all of the details of the economic world. An economic model is especially useful when dealing with positive economic analysis.arrow_forwardSuppose you and your brother go out for dinner. Your brother orders a cheeseburger and fries. When the food first arrives, you ask your brother if you can have a few fries. He looks at you like you're crazy, and says, "No!" Then a few minutes later, after you've both started eating, you ask again, and your brother reluctantly says, "Sure. Go ahead." An economist's explanation for your brother's change of heart is most likely to be that your brother's marginal utility from eating additional french fries declines as he eats more of them, so he's more likely to share with you after he's eaten a few. your brother's total utility increases as he eats more french fries, so he's more likely to share with you after he's eaten a few. your brother's marginal utility from eating additional french fries increases as he eats more of them, so he's more likely to share with you after he's eaten a few. your brother's total utility declines as he eats more french fries, so…arrow_forward"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?arrow_forward
- True/false/explain. Economic models must mirror reality or they are of no value. When economists make normative statements, they are more likely to be acting as scientists.arrow_forwardCarefully distinguish between economic theory and economic model. What is the role of value judgments in economic analysis?arrow_forwardWhich of the following statements about economic models is correct? a) models are built to mirror exact reality b) models are useful, but they should not be used for the purpose of improving public policies c) models seldom incorporate equations or diagrams d) economic models omit many details, therefore they allow us to see what is truly importantarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co