Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 1, Problem 8CQ
To determine
Explain the individuals economize are missing the point of life.
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Economics: Private and Public Choice
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- You and other college students are deciding whether to major in music or engineering. You learn that there is a shortage of engineers, making it easy for engineering graduates to find employment, while there is a glut of musicians for whom finding a job is difficult. As a result, you and many other college students decide to major in engineering. Which economic principle does this illustrate? a) Markets tend to move towards equilibrium as individuals respond to incentives. b) Government intervention can improve efficiency when there is a market failure. c) Changes in incentives are unlikely to change the decisions people make. d) Individuals do not normally take into account the decisions of other individuals.arrow_forwardWhy will economics never be an exact science? No sciences are exact. It studies the actions of people, and human behavior is very hard to predict. You may not conduct experiments on people. It is a physical science, and physical sciences are usually not exact.arrow_forwardIf scarcity and misallocation are two different concepts, how can either concept be used to better understand the relevance of economics science?arrow_forward
- Hello can any one help with this Economics question: A restaurant serves two special dishes, A and B to its customers consisting of 60% men and 40% women. 80% of men order dish A and the rest B. 70% of women order B and the rest A. In what ratio of A to B should the restaurant prepare the two dishes ?arrow_forwardSo is my solution wrong?arrow_forwardPlease use the graph to answer the given questions. Assume the people act rationally. Which of the statements best describes a situation represented by point A? Look at the image to solve for this Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it. Janine predicts that, if she borrows to expand operations, she will earn a rate of profit higher than the interest rate of the loan. So, she decides to take out the loan. Carly decides against purchasing a corporate bond because she has another investment opportunity that returns 17%. Given the market conditions, what will be the prevailing interest rate? 18% 2% 17% 10% 6% Given the market conditions, how much will be available in loanable funds? $90 billion $50 billion $30 billion $70…arrow_forward
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