Many people believe that the study of economics is focused on money and financial markets. Based on your reading of the chapter, how would you define economics?
What will be an ideal response?
Economics is the study of how agents (for example, households and firms) choose to allocate scarce resources and how these choices affect society. Although it is true that economics studies money and the financial markets, the study of economics is really focused on human behavior and choices. Given that we have limited resources, we need to choose between various options. Economic analysis is used to understand people's choices in order to describe what people do and recommend what people ought to do.
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Consider the demand for labor in the computer chip industry. The demand for labor
A) is derived from the demand for computer chips. B) is shown by a perfectly elastic demand for labor. C) is shown by a perfectly inelastic demand for labor. D) has a demand curve that is backward bending.
When a government earns more than it spends in revenue, we say that it has a:
A. budget surplus. B. budget deficit. C. federal debt. D. federal deficit.
As a result of a tariff on good X,
a. domestic producers of good X are better off because they sell more goods at a higher price. b. domestic producers of good X are better off because they sell more goods at the same price. c. domestic producers of good X are better off because they sell the same quantity of goods at a higher price. d. consumers of good X are better off because more domestically produced goods are available.
On June 8, Williams Company issued an $90,000, 12%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar
a. $100,800 b. $93,600 c. $90,000 d. $10,800