Assume it has been determined that those that identify themselves as liberal have a higher probability of buying Apple products. Explain this outcome two different ways: Part a) Using neoclassical economics
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- What is neoclassical theory? Please use your own wordsIn the Teenaged Neoclassical Model (akin to Ramey's neoclassical framework), government purchases (G) are presumed to be intrincally useless; one example might be military spending in a country without foreign enemies. In the TNM, when government purchases rise, what happens to GDP (Y) and to subjective well-being (U)? Y rises, U falls. Y falls, U falls. Y rises, U rises. Y falls, U rises.Why does the ceteris paribus assumption allow economists to focus on the variable they are interested in? Give an example.
- Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental processes?Nutritional economics. Suppose we are considering a hungry individual in the Gross-man model deciding what to have for dinner. His options are listed in Table 3.2. Each dish has an effect on the level of the home good Z and health H.a. Suppose the diner’s single-period utility function is as follows: U = 3Z + HIf the diner is trying to maximize his single-period utility, and he can only select one item from Table 3.2, which meal would he choose?b. A miracle pill is discovered that halves the negative health impact of cookies. How does this impact the diner’s choice?c. What effect does the miracle pill have on the diner’s health H? Interpret this result.Does this mean the diner would be better off without the miracle pill?d. If the diner is instead trying to maximize his lifetime utility and not just his single-period utility, how might your answer to Exercise 16(a) change? Is he likely to value Z or H more in the lifetime context than the single-period context? Explain your answer, and…Does neoclassical economics focus on the long term or the short term? Explain your answer.
- Given that the Mundell-Fleming model is one of the innovations of neoclassical economics, do the policy recommendations remain timely and relevant?“According to the Random-Walk Hypothesis of Consumption under Uncertainty, individuals don’t need to optimise their consumption over time since the consumption is totally unpredictable” True or False?According to the basic discounting principle, individuals value current consumption (i.e. consumption now) more than future consumption (i.e. consumption tomorrow). A) True B) False
- What diagrams should I use in the question "Explain the consumption duality to derive Marshallian and Hicksian demand curves. Discuss why this is important for neoclassical microeconomic theory." and how should i explain themUsing “The Evolution of Economic Thought” book by Randy R. Grant and Stanley L. Brue as your reference 1. what is the historical background of neoclassical school of economics. give all pointsWhich one of the following statements is false? Group of answer choices -The neoclassical model came to dominate economic thinking in the twentieth century. -The neoclassical model used solar energy as the primary input to production. -The neoclassical model takes a narrower view of human motivations than the behavioral model. -The idea of rationality is at the core of the neoclassical model. -The neoclassical model is the basis for Paul Samuelson’s textbook on introductory economics.