How would an economist respond to the following statement: "Wanting more goods makes us greedy."
Economists do not view the unlimited human desire for goods and services to be an indication of "greediness." Economists assume that all individuals want more resources in order to reach greater levels of satisfaction (whether to benefit yourself, your family, or others).
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If the economy is on the IS curve, but is to the left of the LM curve, then the ________ market is in equilibrium, but the interest rate is ________ the equilibrium level
A) goods; below B) goods; above C) money; below D) money; above
Taxes ____ the incentive to work, since they ____ an individual's after-tax earnings
a. reduce; increase b. increase; reduce c. increase; increase d. reduce; reduce
"Saving" refers to ____ while "savings" refers to ____
a. a stock concept; a flow concept b. how much is saved within a certain time period; accumulated assets c. a stock concept; accumulated assets d. how much is saved within a certain time period; a flow concept
The difference between actual real GDP and potential GDP
a. decreases as the unemployment rate rises. b. increases as the unemployment rate rises. c. increases as the employment rate rises. d. decreases as the labor force increases.