Economics is often described as a science of constrained choice. How do you justify this argument?
Economics deals with the allocation of limited resources to satisfy unlimited human wants. We need resources such as labor, capital, raw material etc, to produce goods and services to satisfy man's unlimited needs. These resources are not only scarce but they have more than one use. The scarcity of resources means humans are constrained in the choices they make about the goods and services they produce, and thus also about which wants they will ultimately satisfy.
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One of the reasons why we have several competing theories of international trade flows is difficulty economists encounter in devising and carrying out precise tests of trade theories
Indicate whether the statement is true or false
The long-run aggregate supply curve can be thought of as the
A) level of output that the nation is currently producing. B) full-employment level of real GDP. C) level of real GDP associated with a constant price level. D) level of output for which real GDP equals nominal GDP.
Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude
a. the U.S. has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the U.S. has a absolute advantage in the production of wine. d. all of the above are conclusions are correct.
Which of the following would a macroeconomist consider as investment?
a. Marisa purchases a bond issued by Proctor and Gamble Corp. b. Karlee purchases stock issued by Texas Instruments, Inc. c. Charlie builds a new coffee shop. d. All of the above are correct.