Why do economists use graphs in their work?
Please provide the best answer for the statement.
Economists use graphs to illustrate the relationship between economic variables in a visual format which often is more efficient than explaining the relationship in words. By seeing the relationship in graphical format, the reader (viewer) is able to readily describe the relationship.
You might also like to view...
According to the Application, what percentage of the world's population currently lives in urban squatter settlements and therefore has very little housing security?
A) 1% B) 10% C) 30% D) 50%
The AD curve is the relationship between
A) aggregate planned expenditure and the price level. B) aggregate planned expenditure and real GDP when the price level is fixed. C) the quantity of real GDP demanded and the unemployment rate. D) aggregate planned expenditure and the quantity of real GDP demanded. E) the quantity of real GDP demanded and the quantity of real GDP supplied. The above figure shows a nation's consumption function.
Tim Tupper contracts with two other students to help him provide a term paper-typing service. In the last two weeks of the semester, he sees a tremendous increase in demand. His profit-maximizing response would be represented by
a. a rightward shift of the supply curve because it is possible to earn economic profits b. a rightward shift of the supply curve because the increase in demand is probably only temporary c. a reduction in supply to take full advantage of the increase in demand d. a movement up to the right along the supply curve because the increase in demand is probably only temporary e. an upward movement in horizontal demand curve he faces because now he can charge a lower price
Assume that a lender had lent $2,500 at the rate of 12 percent per annum for a year, expecting an inflation rate of 3 percent. However, at the end of the year rate of inflation increased to 5 percent. The purchasing power of the lender:
a. will decline by $51.78 b. will appreciate by $51.78 c. will decline by $211.54 d. will appreciate by $211.54