President Truman once said he wanted to find a one-armed economist because when he asked his economists for advice, they always answered, "On the one hand, ... On the other hand, ...". Truman's observation that economists' advice is not always straightforward
a. is rooted in the principle that people face tradeoffs.
b. indicates that economists recognize that there are opportunity costs associated with policy decisions.
c. confirms that economists are not suited to be presidential advisers.
d. More than one of the above is correct.
d
You might also like to view...
Why do most people choose to specialize in a narrow set of skills for their work, rather than to learn a little bit about several varied fields of endeavor?
A) They feel that doing so will minimize their chances of being unemployed. B) They don't correctly perceive the costs of being so specialized. C) It allows them to earn more income by being more productive. D) They are unaware of how much better off they would be if they diversified their skills.
Monopolistic competition and perfect competition are different in that monopolistically competitive firms: a. cannot earn profits in the short run
b. face firm demand curves that are less elastic than perfectly competitive firms. c. face substantial barriers to entry. d. earn economic profits in the long run.
In a competitive market economy, a resource in short supply will be allocated
a. so that each firm gets enough to keep producing some portion of its output. b. according to how much each firm purchased before the shortage. c. to those firms that can make the most profitable use of it. d. by government regulation.
Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because
A) of apathy. B) of ignorance. C) of laziness. D) they believe the benefits of becoming informed are greater than the costs. E) they believe the benefits of becoming informed are less than the costs.