MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Chapter 2, Problem 5IP
To determine
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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.
For each of the following, indicate how you might apply the four core principles of economics (the cost benefit principle, the opportunity cost principle, the marginal principle, or the interdependence principle).
You are considering whether you should vote in the next election.
You watch a beautiful sunset from the back porch of your home.
Should you major in economics or philosophy?
Should you and your spouse purchase a second vehicle?
One of the famous Utopian Socialists, Robert Owen, disagreed with Adam Smith that self-interest would bring harmony of interest. Explain his viewpoint on the relationship between human character and their surrounding environment and the social revolution that he introduced in his New Lanark Mills in order to prove his theory.
Explain in brief why Marxian Socialism dismissed the moderate approach used by Utopian and Christian Socialism to eradicate the worst aspect of Capitalism
Chapter 2 Solutions
MICROECONOMICS
Ch. 2.1 - Prob. 1QCh. 2.1 - Prob. 2QCh. 2.1 - Prob. 3QCh. 2.1 - Prob. 4QCh. 2.1 - Prob. 5QCh. 2.1 - Prob. 6QCh. 2.1 - Prob. 7QCh. 2.1 - Prob. 8QCh. 2.1 - Prob. 9QCh. 2.1 - Prob. 10Q
Ch. 2.A - Prob. 1QECh. 2.A - Prob. 2QECh. 2.A - Prob. 3QECh. 2.A - Prob. 4QECh. 2.A - Prob. 5QECh. 2.A - Prob. 6QECh. 2.A - Prob. 7QECh. 2.A - Prob. 8QECh. 2 - Prob. 1QECh. 2 - Prob. 2QECh. 2 - Prob. 3QECh. 2 - Prob. 4QECh. 2 - Prob. 5QECh. 2 - Prob. 6QECh. 2 - Prob. 7QECh. 2 - Prob. 8QECh. 2 - Prob. 9QECh. 2 - Prob. 10QECh. 2 - Prob. 11QECh. 2 - Prob. 12QECh. 2 - Prob. 1QAPCh. 2 - Prob. 2QAPCh. 2 - Prob. 3QAPCh. 2 - Prob. 4QAPCh. 2 - Prob. 5QAPCh. 2 - Prob. 1IPCh. 2 - Prob. 2IPCh. 2 - Prob. 3IPCh. 2 - Prob. 4IPCh. 2 - Prob. 5IPCh. 2 - Prob. 6IP
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Similar questions
- Consider your decision to read this textbook on economics. Identify which of the four core principles of economics (the cost benefit principle, the opportunity cost principle, the marginal principle, or the interdependence principle) is most relevant for the following aspects of that decision. Reading this textbook will help establish a solid foundation for understanding concepts you will learn in more advanced economics courses. Reading this textbook will require time and effort, but doing so will help you improve your grade in this course. The time you will spend reading this textbook could instead be used to study for your chemistry exam. Each extra page that you read and each practice problem that you complete will help you increase your understanding of the material.arrow_forwardWhich of the below statements DOES NOT capture Economics? Group of answer choices Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread. The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree. Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game. Even the most prosperous economy will contiue to require certain manual tasks that do not require advanced college degrees. These tasks cannot be replaced with automation. Expecting Ph.D.s or people with professional education to do such tasks will have a high opportunity cost.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
- Local government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use. Which of the following best characterizes the statement? The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects. The statement demonstrates that normative economics is often confused with positive economics. The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria. The statement shows that all environmental regulations have benefits that exceed the costs.arrow_forwardEvidence accumulates that the use of fertilizers, which increases agricultural production greatly, damages water quality. Explain in words how you would draw a production possibility curve to depict this (i.e. which good should be placed on each axis) and why your curve would have a particular shape.arrow_forwardOne of the lessons of economics is that “there is no such thing as a free lunch.” This means that businesses, consumers, and whole societies face trade-offs whenever they make a decision. Please draw on your own experiences to discuss the following three items. Make sure you use economic concepts in your main contribution. Explain a decision that you have made at work, or one concerning your career, or any major life decision that you have made. Identify and explain the trade-offs that you faced. List the alternatives you had, identify the highest valued alternative, and explain your final decision to the class.arrow_forward
- Since everyone has the same needs, we can therefore say that scarcity is an absolute term. Is this True or False? Can coffee and sugar be an example of substitute goods?arrow_forwardYou 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_forwardExplain why scarcity leads to tradeoffsarrow_forward
- How does Homo Economicus influence economic models? Describe an argument against using Homo Economicus as the basis of economic theory.arrow_forwardFisher claims that the counterparts of particle and energy in mechanics are individual and utility in economics. The 2nd law of thermodynamics, on the other hand, asserts that free energy is irreversibly converted to bound energy as entropy continuously increases in the universe. Discuss whether the mainstream economics is compatible with the universe described by thermodynamics.arrow_forwardECONOMICS QUESTIONS 1d. Suppose your roommates notice that every time they leave a mess in the kitchen, you clean it up for them. How might this incentivize them to behave? What is this example an illustration of? 1e) Consider a newly discovered forest that has no regulations about what can be done with its trees. Can people be prevented from going into the forest and cutting down trees? Explain. 1f) Are the trees rival in consumption? What type of good are the trees? What would you predict to happen to this forest over time and why? What is one policy that might prevent your prediction from happening?arrow_forward
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