Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 1QR
To determine
Inwhat way the subject economics is considered as a science.
Expert Solution & Answer
Explanation of Solution
The subject economics is a science. This is because economics is based on scientific methods and theories. Economists develop a theory only after scientifically analyzing data. They collect necessary data and analyze it to verify different policies and their impact. Thus, economics is a science.
Economics Concept Introduction
Concept introduction:
Economics: Economics is a social science which studies human behavior as a connection between ends and scarce resources which have multiple uses. In other words, economics focuses on the behavior and interactions of economic agents and how economies work.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
please show complete solution, step by step, thanks
To determine the benefits of extending hours of operation for a food truck business, the couple should calculate additional revenue, break-even analysis, market demand, and raise prices. They should analyze competitors' prices and customer sensitivity to price changes, determine price elasticity, and test the strategy by implementing a slight price increase and monitoring sales closely.
If costs exceed revenues, the couple should analyze their financials, evaluate their business model, explore new revenue streams, and consider long-term viability. They should analyze their financial statements to identify high costs and areas for reduction, evaluate their business model based on market demand, and explore new revenue streams like catering, special events, or partnerships with local businesses.
Long-term viability is a key consideration, as if the business still operates at a loss after making adjustments, it may be necessary to consider shutting down. Staying in business should be…
Respond to following post.
You can charge higher prices if the parents think these are valuable by providing different services such as extended hours, healthy lunches, and smaller staff-to-child ratios. But pushing for prices much higher won’t make sense unless parents think the added value is worth the price hike. You should research your local parents to find out what they want.
If you want your business to be profitable, then focus on your strengths, do great work and have a reputation. Promote your special products and keep your prices low.
If you want to see if you’re making money, keep a log of all your profits and losses. You’re making money if you’re earning more than you’re losing. A break-even analysis can help you figure out how many customers you need to eat and start making money. Keep an eye on your budget so you don’t get off track.
Chapter 2 Solutions
Essentials of Economics (MindTap Course List)
Knowledge Booster
Similar questions
- If you are willing to pay up to $8 for your first cup of coffee the blank of your first cup of coffee is $8arrow_forwardnot use ai pleasearrow_forward(Figure: Good Y and Good X) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change? Quantity of good Y 18 16 14 Budget constraint 2 12- 10 8 Budget constraint 1 6 4 2 0 2 4 6 8 10 12 14 16 18 20 Quantity of good X an increase in income and an decrease in the price of good X relative to that of good Y a decrease in income an decrease in the price of good X and no change in the price of Y a decrease in income and an increase in the price of good X relative to that of good Y an increase in income a decrease in the price of good X relative to that of good Yarrow_forward
- Suppose you have the three scenarios proposed below. Using the language of the Levy and Meltzer paper, Scenario(s). Scenario(s) _ can best be described as a randomized experiment. can best be described as an observational study, and Scenario A: Researchers randomly assign some individuals to a high-intensity workout program and others to a low-intensity program. They then track the participants to see how their cardiovascular health changes over time. Scenario B: Researchers randomly assign individuals to receive varying levels of nutrition education. They track participants and see how eating habits changed. Scenario C: Researchers have data on individuals' workout habits and their cardiovascular health. They use this data to describe the relationship between workout intensity and cardiovascular health. A; B and C A; B and C × A and B; C C; A and B B and C; Aarrow_forwardSuppose you observe that when the price of a particular vitamin supplement_ by 3%, the quantity purchased increased by 0.9%. This implies that this vitamin supplement is price in demand and that the price elasticity of demand is equal to _ ☑ rises; inelastic; 0.3 O O rises; inelastic; 0.9 falls; inelastic; 0.3 rises; elastic; 3 falls; inelastic; 0.9arrow_forwardA manager asks an employee, "Should we use our research budget to improve the quality of the products we already make, or to develop new products?" The manager's question is best classified as which one of the following fundamental economic questions?arrow_forward
- Suppose that the hypothetical country of Paddyland suffers a chronic scarcity of its staple grain, rice. True or False: Paddyland must be a developing country, since scarcity is not a problem in developed countries.arrow_forwardKnowledge Check 01 Cyber Devices manufactures PCTV products that enable people to watch television content on their computers. It sells its product to retailers for $50. A tuner component that goes into each of these devices costs $5 to acquire. The total variable cost at an activity level of 1,000 units equals q, $50,000 $5 $1,000 $5,000J owing statements about opportunity costs is not correct? An opportunity cost is the potential benefit that is given up when one alternative is selected over another. An opportunity cost cannot be changed by any decision made now or in the future. Opportunity costs are not usually found in accounting records. Opportunity costs are costs that must be explicitly considered in every decision a manager makes.arrow_forwardnotarrow_forward
- 1. Child Care That Cares A group of your friends got together and decided to start a childcare business in their town. The town currently has three other childcare centers. The clients are mostly the children of working parents. Your friends realize that they are going to enter a market that already has competition and that they will have to compete for the same customers. Their goal is to attract as many customers as possible, keep their prices within reach, be different, and at the same time make profits in the long run. Your friends approached you to ask you the following questions to help them make the best business decision: If we provide a bit different services than the competition, such as longer hours, healthy lunch, and smaller staff to children ratio, do you think we can charge significantly higher prices than our competition? Explain why. Given that we have competition, what do we need to do to make our business profitable? How can we determine whether we are making…arrow_forward2. Truck or Train? They both move, right? Your uncle and aunt operate a food truck near a busy train station. Their primary customers are commuters who work in another town. They told you that it costs them about $1,000 daily to run the food truck from 7:00 a.m. until 5:00 p.m. (on average $100 per hour). They average $1,500 in revenue per day. They want to make more money, and they have the idea of extending their hours until 9:00 p.m. daily. They want your opinion, so they ask you the following questions: If we extend our hours from 5:00 p.m. to either 7:00 pm or 9:00 p.m., how do we know it’s worth it? How do we know that it is beneficial to close later knowing that every additional hour of operation costs us $100? Do you think it is a good idea to raise our prices to increase our revenues? How do we know if raising prices is beneficial to us? What should we do if our costs exceed our revenues over time? Should we stay in business or shut down? Why?arrow_forwardNAFTA (North American Free Trade Agreement) is an agreement that does what? Allows the free migration of people between countries in North America Limits tariffs and trade restrictions Ensures that all countries have strong environmental and workers rights regulations All of the abovearrow_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
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
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co