When economists disagree, it is often over what type of issues?
Economists generally disagree on policy issues that require utilizing normative economic analysis. Differences in beliefs or values lead to conflicts as to the best resolution of an economic problem.
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Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home. Which of the following is the most likely explanation for her behavior?
a. The opportunity cost of her time is very low. b. She doesn't take travel time into consideration. c. She doesn't like to cook or doesn't know how. d. The prices at the more expensive restaurant understate the opportunity cost of eating there. e. The higher monetary cost of the more expensive restaurant is offset by the higher opportunity cost of the lower-priced restaurant.
The elasticity of supply coefficient for bicycles is estimated to be equal to 1.5 . It is expected, therefore, that a 4% increase in price would lead to:
a. a 4% decrease in the quantity of bicycles supplied. b. a 4% increase in the quantity of bicycles supplied. c. a 6% decrease in the quantity of bicycles supplied. d. a 6% increase in the quantity of bicycles supplied.
Consider two cars manufactured by Chevrolet in 2014 . During 2014, Chevrolet sells one of the two cars to Emily for $20,000 . Later in the same year, Emily sells the car to Jim for $18,000 . The second automobile, with a market value of $19,000, is unsold at the end of 2014 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2014?
a. $20,000 b. $37,000 c. $38,000 d. $39,000
In the U.S. Steel case, the Supreme Court
A. broke up the company because it was big. B. applied the rule of reason. C. applied the 60% rule. D. determined that the company had violated the Sherman Antitrust Act.