If an economist wanted to understand why people don't buy life insurance, he would want to use the deductive approach.
Answer the following statement true (T) or false (F)
True
Such "why" questions can be answered adequately only by using the inductive approach, in which understanding is developed empirically from observed data.
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Refer to Scenario 1 . Explain how this economy might be able to produce 45 fish and 45 crabs?
What will be an ideal response?
An example of rent-seeking behavior would be:
a. streamlining production processes. b. lobbying legislators in charge of drafting business legislation. c. engaging in price discrimination. d. keeping prices below the profit maximizing level.
A “conservative” would most likely argue in favor of
A. tax increases when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. B. tax cuts when fiscal restraint is necessary, and spending cuts when fiscal stimulus is necessary. C. tax cuts when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. D. spending increases when fiscal expansion is necessary, and tax increases when fiscal stimulus is necessary.
The market demand curve for a public good
a. is the horizontal sum of all individual demand curves b. is the vertical sum of all individual demand curves. c. is upward sloping d. is horizontal e. does not exist