Why is economics often described as the science of constrained choice? In some countries the government makes most of the decisions about what will be produced, how it will be produced, and for whom. Does the fact that these choices are made by the government eliminate scarcity in these countries? Why or why not? Should an economic model describe reality exactly?

Q: Identify each of the following topics as being part of microeconomics or macroeconomics: a. the…

A: Microeconomics studies the individual behavior of the people in the economy, and macroeconomics…

Q: What type of economists believe that markets naturally self-correct, and will reward good strategies…

A: Laissez fair economics theory advocates non-government intervention in the economic activity.  They…

Q: Provide two microeconomic statements and two macroeconomic statements. Classify your statements as…

A: The economics as a study is based upon the working of the scarce resources in the economy where the…

Q: Explain why economics is so cool

A: Economics is a study of human behavior that helps to understand how individuals satisfy their…

Q: Which of the following is NOT true of a market economy? Decisions are regulated by a central agency.…

A: Option D is wrong  It relies millions of individual economic dicision to determine economic output…

Q: what is the difference between a positive statement and a normative statement?

A: According to economists, there are two types of activities within an economy. On the one side, there…

Q: Economic models A) are people who act out the behavior of firms and households so that economists…

A: Because of economic models,economists are able to understand economic terms and relate it to reality…

Q: What good is economic theory if it can't predict the behavior of a specific individual?

A: The economic theory are the simplification of the economic realities which are used to make the…

Q: How equilibrium is determined in microeconomics?

A: Equilibrium is defined as a state in the economy where all economic forces are balancing each other.

Q: classify the following as microeconomics or macroeconomics and provide a justification for your…

A: Microeconomics is the study of human behavior or individual unit. The main concern of the study is…

Q: Since everyone has the same needs, we can therefore say that scarcity is an absolute term. Is this…

A: Scarcity is a very important economic problem which shows the difference between the unlimited wants…

Q: Why is economics often described as the science of constrained choice?

A: The desire and need for goods and services such as food, housing, cloth, and anything that improve…

Q: True or false? Scarcity in economics could be eliminated but poverty could not.

A: Scarcity is gradually considered as one of the basic or primary problem of the economy, the wants…

Q: How can we apply economics to everyday life situations? Define Economics? Identify reasons for…

A: Defining Economics: Economics is a combination of two Greek words, eco meaning household and nomos…

Q: Which of the following is an example of a microeconomic issue? A.  The unemployment rate is…

A: Individual economic units are studied in microeconomics. Macroeconomics is an economics branch that…

Q: What is the difference between positive and normative economics? Why are positive questions easier…

A: Positive economics is a stream of economics focused on identifying, quantifying, and explaining…

Q: What is the difference between an economu based on individualism and an economy based on…

A: Economy based on individualism :-  The basic feature of the economy is that it provides freedom to…

Q: What three institutions influence economics the most? Explain how each influences economics and…

A: Economics is referred as a social science. The word 'Economics' is originated from the GREEK word…

Q: Would a good economic model be more likely toaddress a positive statement or a normative statement?…

A: A positive statement is that statement which explains the actual phenomenon of the subject. These…

Q: People must make choices because the amounts of resources:    a. are unlimited.    b. are…

A: The employment of resources in the economy to create new goods and services to satisfy the wants of…

Q: Which of the following statements about economic models is correct? a) models are built to mirror…

A: In economics, economic agents have to make rational choices so that the limited resources in the…

Q: Provide an explanation an economist might give showing why each statement is true: - scarcity always…

A: Scarcity exists where the demand tends to be larger than that of availability of resources. Or…

Q: Which of the following assertions is NOT a basic economic assumption? a. People act rationally. b.…

A: Economics is all about assumptions, it is related to production, distribution, scarcity, consumption…

Q: What is economics most concerned with? keeping interest rates low O making money allocating scarce…

A: What is economic most concerned with.

Q: Frontiers of Microeconomics Economic behavior is more complex than assumed by conventional economic…

A: The economic model of human behavior is a representation of people’s actions. The concept is based…

Q: Why must economic theories and models be abstract?

A: Economic theory is based upon the assumption that consumers and investors are rational and also…

Q: The Department of family planning estimated that it would costs a middle-income family $550,530 to…

A: Given: Cost of raising a child from age 1-17=$550530

Q: What good is economic theory if it cannot predict the behavior of a specific individual?

A: Economic theory helps in analyzing the functioning of an economy. It helps in understanding both the…

Q: Should an economic model describe reality exactly?

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…

Q: Why do you think economic models are important in econometric?

A: Econometrics is the application of the statistical method to economic data in order to give…

Q: Why is economics is deeply rooted in the concept of scarcity?

A: Professor Lionel Robinson is a person who give importance to scarcity in economics.

Q: In the capitalist economic system, the individuals through the forces of demand and supply interact…

A: In a capitalist economy, resources are owned and controlled by industrialist private owners. Though…

Q: Do economists have any particular expertise at making normative arguments? In other words, they have…

A: Both positive and normative economics are the branches of modern economics. The positive analysis…

Q: Why is scarcity central to economics?

A: The economics is considered to be a very vast area of study, where there are various entities in…

Q: Which of the following questions is not answered by the decisions that every society must make? a.…

A: Three questions to be answered What goods and services are to be produced? How should these be made…

Q: WHY IS ECONOMICS RELEVANT VERSUS IMPORTANT?

A: Allocation of resources is the distribution of available resources and assets among various works…

Q: Discuss a theory of economics that you identify with - how is this theory applied in real world…

A: Theory of opportunity cost: In economics, opportunity cost can be understood as the second best…

Q: What is laissez-faire theory and is it applicable to the economy? Why and why not?

A: Laissez Faire theory is free form of economy where the government intervention is absent in the…

Q: Tim Geithner, a former U. S. Treasury Secretary, has said, "The recession that began in late 2007…

A: The following are the main economic interaction principles:-1) One consumer's expenditures are…