Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 2, Problem 22CTQ
What assumptions about the economy must he true for the invisible hand to work? To what extent are those assumptions valid in line real world?
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Chapter 2 Solutions
Principles of Macroeconomics 2e
Ch. 2 - Suppose Alphonsos town raised the price of bus...Ch. 2 - Return to the example in Figure 2.4. Suppose there...Ch. 2 - Could a nation be producing in a way that is...Ch. 2 - What are the similarities between a consumers...Ch. 2 - Individuals may not act in the rational,...Ch. 2 - Would an op-ed piece in a newspaper urging the...Ch. 2 - Would a research study on the effects of soft...Ch. 2 - Explain why scarcity leads to tradeoffs.Ch. 2 - Explain why individuals make Choices that are...Ch. 2 - What is comparative advantage?
Ch. 2 - What does a production possibilities frontier...Ch. 2 - Why is a production possibilities frontier...Ch. 2 - Explain why societies cannot make a choice above...Ch. 2 - What are diminishing marginal returns?Ch. 2 - What is productive efficiency? Allocative...Ch. 2 - What is the difference between a positive and a...Ch. 2 - Is the economic model of decision-making intended...Ch. 2 - What are four responses to the claim that people...Ch. 2 - Suppose Alphonsos town raises the price of bus...Ch. 2 - During the Second World War, Germanys factories...Ch. 2 - It is clear that productive inefficiency is a...Ch. 2 - What assumptions about the economy must he true...Ch. 2 - Do economists have any particular expertise at...Ch. 2 - If the price of a magazine is 4 each, what is the...Ch. 2 - If the price of a pie is 12, what is the maximum...Ch. 2 - Draw Maries budget constraint with pies on the...Ch. 2 - What is Maries opportunity cost of purchasing a...
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Similar questions
- Explain how Marx's principle may or may not apply to today: - economics rules everythingarrow_forwardSince 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_forwardxt:Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she could follow is, "Choose the activity with the highest value" (A). Another rule she could follow is, "Choose the activity with the lowest opportunity cost" (B). Do you think Bong-Cha's choice if she follows rule (A) will be the same as the choice she would make if she followed rule (B)? [another way to think about it, "Is rule (A) identical to rule (B) in a sense that they would both induce the same choice?"].arrow_forward
- In his discussion with Mr. Strawn, Philip Dru agrees that in the present state, Marx's ideal cannot be achieved due to the incentives argument. However, he does say that a solution is possible in the future. According to Dru, how will society overcome the incentives problem? Do you think that his solution will be successful?arrow_forwardWhat is the best test of an economic theory? a. Whether it produces implications that are favored by the researcher. b. Its ability to predict real-world events, patterns, and changes. c. Its eloquence. d. The plausibility of its assumptions.arrow_forwardDuring the Second World War, Germanys factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germanys production possibilities curve?arrow_forward
- Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?arrow_forwardProvide two microeconomic statements and two macroeconomic statements. Classifyyourstatements as positive or normative.arrow_forwardDo economists have any particular expertise atmaking normative arguments? In other words, they haveexpertise at making positive statements (i.e., what willhappen) about some economic policy, for example, butdo they have special expertise to judge whether or notthe policy should be undertaken?arrow_forward
- The Rawls's maximin principle has had _____ among economists because it ________trade-offs. O a. little influence; overemphasizes O b. great influence; emphasizes O c. little influence; ignores O d. great influence; ignoresarrow_forwardDifferentiate between positive economics and normative economics give atleast four differencearrow_forwardTrue/false/explain. Economic models must mirror reality or they are of no value. When economists make normative statements, they are more likely to be acting as scientists.arrow_forward
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