Which one of the following is the best example of someone acting according to the assumptions of the traditional neoclassical model? -Dori studies hard for her test so she can eventually land a great job. -Alenia buys groceries for her sick neighbor out of kindness. -Marc buys a pack of cigarettes out of habit. -Chip buys an exercise machine based on a TV ad, even though research has shown that the machine is ineffective.

Which one of the following is the best example of someone acting according to the assumptions of the traditional neoclassical model? -Dori studies hard for her test so she can eventually land a great job. -Alenia buys groceries for her sick neighbor out of kindness. -Marc buys a pack of cigarettes out of habit. -Chip buys an exercise machine based on a TV ad, even though research has shown that the machine is ineffective.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 10RQ: Do neoclassical economists tend to focus more on long term economic growth or on recessions? Explain...

See similar textbooks

Similar questions

Which 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.
In a neoclassical model, describe how each of the following developments or measures will impact unemployment:• a rise in income levels for consumers throughout the economy• cheaper imported products• a fall in government spending
In the neoclassical Supply and Demand model, what is meant by shortage? Group of answer choices Making a bet that the value of a stock will go down. At the existing price, the quantity demanded exceeds the quantity supplied. At the existing price, quantity supplied exceeds the quantity demanded. A decrease in quantity demanded.
What are 4 basic assumptions of neoclassical economics
In neoclassical economics, if there is unemployment, it means that:
In what way is neoclassical economics different from old and new institutional economics? Which school of thought is founded on principles that are closer to reality?
Given that the Mundell-Fleming model is one of the innovations of neoclassical economics, do the policy recommendations remain timely and relevant?
One practical limitation of the Classical or Neoclassical model is that it suggests allowing the economy to self-correct in the long run, but recessions may last a very long time. How severe is this problem and why? What is one example?
What does potential GDP mean and what does it mean in terms of neoclassical analysis? Please be sure to utilise examples.
What policies will a Neoclassical Economist tell the government to enact in order to foster a healthy economy? a) The government should increase production output through regulating sales of resources and strictly monitor exports and imports. b) The government should implement the COLA to improve the economy c) The government should set up and regulate wages and unions, and set price floors and ceilings for specific fundamental goods. d) The government should keep inflation low and maintain low tax levels over the long run.
Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical approach. Briefly explain what is meant by the term "menu costs" from a macroeconomic perspective?
Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical approach.