Macroeconomists focus on just a few key statistics when trying to understand the health and trajectory of an economy because
What will be an ideal response?
it is too difficult to process all of the information in each market or for every good or service in the economy. correct
You might also like to view...
A perfectly competitive firm is producing 50 units of output, which it sells at the market price of $23 per unit. The firm's average total cost is $20. What is the firm's total revenue?
A) $23 B) $150 C) $1,000 D) $1,150 E) $20
Economics is a social science rather than a "hard" science like physics because
a. economists abstract from reality when creating their theories. b. economics is easier to study than physics. c. economists must explain their theories to policy makers who lack formal mathematical training. d. economists study human behavior, which is affected by an unpredictable and vast range of influences.
Trade will take place:
A. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. C. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. D. None of the statements associated with this question are correct.
Answer the following statement true (T) or false (F)
1) Each point on a single indifference curve reflects the same level of total utility for a consumer. 2) It is possible for a consumer's indifference curves to intersect. 3) A rational consumer will try to achieve the highest indifference curve that his or her income will allow. 4) Indifference analysis assumes that utility is numerically measurable. 5) As a consumer moves down a given indifference curve, his or her total utility will diminish.