Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 1, Problem 6P
To determine
The statements from the given options that involve fallacy.
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If scarcity and misallocation are two different concepts, how can either concept be used to better understand the relevance of economics science?
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Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store.
Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it.
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Which of the below statements DOES NOT capture what Charles Wheelan has expressed in chapter 6 Productivity and Human Capital of Naked Economics?
A) 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.
B) Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread.
C) The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree.
D) Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game.
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