Why do economists avoid basing theories on the responses of a few individuals?
a. Individual responses are often incomplete.
b. Individuals hate being tested.
c. Individuals rarely know what they want.
d. Individual responses are unpredictable.
d. Individual responses are unpredictable.
You might also like to view...
Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?
A) Waldo's real income expressed in terms of pretzels is 40 bags of pretzels. B) Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches. C) The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich. D) All of the above answers are correct.
Explain how each of the following events would affect the long-run aggregate supply curve
a. A lower price level b. A decrease in the labor force c. A decrease in the quantity of capital goods d. Technological change
In response to the demands of environmentalists, large sections of timberlands are put off limits to logging. What effect will this have on the aggregate supply curve?
A. Shift the curve outward. B. Shift the curve inward. C. Move the economy up along the curve. D. Move the economy down along the curve.
Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result in:
A. economies of scale. B. Gigantic Company achieving the minimum efficient scale of production. C. diseconomies of scale. D. increasing marginal returns.