Question
If possible, basic explanation will be really helpful!!
Thank You!!
The basic problem of economics arises when there arc unlimited resources available to fulfill society's limited wants. True False Individuals must make choices because resources arc scarce and wants arc limited resources and wants arc unlimited assets and wealth arc distributed unevenly resources arc scarce and wants arc unlimited inflation usually outpaces income growth Macroeconomics focuses on the behavior of economic agents such as the consumer, a business firm, or a specific market. True False A microeconomist might study which of the following? how inflation changes over time for several countries how money supply aggregates arc measured economic growth in less - developed countries in Africa the relationship between aggregate income and aggregate personal consumption why wages for females arc lower than for males in a particular labor market The study of how firms interact in a market is a waste of time normative subject microeconomic topic topic in political science macroeconomic topic "The Consumer Price Index increased by 4.2 percent in the first quarter of this year." What type of statement is this? normative negative positive subjective biased "Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is neither a normative nor a positive statement both a positive and a normative statement strictly a macroeconomic issue a positive statement a normative statement Positive economics deals with theories about improving people's self - esteem practical ways of improving people's self - esteem by making money opinions that affirm economists' theories statements about the way things ought to be statements of fact An economic model uses equations to understand normative economic phenomena often omits crucial elements simplifies reality in order to focus on crucial elements tries to make simple concepts more complex cannot be proven wrong A good economic model is as simple as possible, including only necessary details is as complex as possible, including many details represents reality as concretely as possible tries to be as detailed as the reality it is describing is very detailed regardless of its purpose Carl is considering attending a concert with a ticket price of S35. He estimates that the cost of driving to the concert and parking there will total an additional $20. In order to attend the concert. Carl will have to take time off from his part - time job. He estimates that he will lose 5 hours at work, at a wage of $6 per hour. Carl's opportunity cost of attending the concert equals $35 $55 $30 $65 $85 The production possibilities frontier is useful for demonstrating both scarcity and productive efficiency. True False Combinations of goods on the production possibilities frontier arc unattainable without additional resources can be produced using currently available resources and technology reflect minimum normative value allocations will meet society's needs but not its wants are attainable only through international trade According to the law of increasing opportunity cost. production points outside the production possibility frontier arc unattainable the production possibility frontier becomes flatter as production increases along the horizontal axis the opportunity cost of producing a good rises as production of that good falls production points inside the production possibility frontier arc unattainable the opportunity cost of producing a good rises as production of that good rises
Explanation / Answer
False (resources are limited, wants are unlimited) D False (that is microeconomics) E (key words: "in a particular labor market") C (from the definition of microeconomics) C (positive statements are facts, normative statements are opinions) E (opinion statement, so its normative) E (positive = facts, economics only deals with hard data, not opinions) C (from the definition of economic model) C (the best economic model for a situation is the one that best represents the situation, not the simplest or most detailed) C (his opportunity cost is the highest valued alternative he gives up, which is 5 hours of wages, or $30) A (scarcity because points outside the frontier can't be produced due to limited resources, productive inefficiency because the points inside the curve are inefficient) B (the points that lie ON the frontier (on the line) are all efficient, making the most use out of available resources and technologies) E (basically as you make or consume more, you get less for each additional unit) (Say you drink a coffee, you might drink a second one but you'll get less out of it, you probably won't drink a third because at that point it doesn't give you any more benefit)
