economic thinking
Society gains advantages through trade because of its ability to attain absolute advantage in our trade with other nations. specialize resources to the uses where opportunity cost is minimized .refine tasks associated with production.
.refine tasks associated with production. specialize resources to the uses where opportunity cost is minimized??
What will we never do in a world of scarcity? Use all economic resources such that we satisfy the maximum amount of wants. Satisfy all basic human needs. Meet all of society's wants.
Meet all of society's wants.
Identify the macroeconomic issue among the following statements. Our family business costs will rise due to higher electric rates. The electric bill is higher this month. The average cost of producing electricity nationally is rising.
The average cost of producing electricity nationally is rising.
As life would have it, we all come to forks in our paths when we need to make a choice, knowing that the opportunity cost of one's decision should be maximized. the impacts of our choices can always be quantified in dollars. the correct choice depends upon how much we need to give up.
The correct choice depends upon how much we need to give up???
Identify the microeconomic topic(s) among the following. =The unemployment rate. The price that a farmer asks for her watermelons. Fiscal policy.
The price that a farmer asks for her watermelons.
he circular flow diagram demonstrates trade-off that scarcity imposes. mathematical equations. a direct relationship between groups in an economy.
a direct relationship between groups in an economy
Due to limits on our time, money, and effort, we are best off when we allocate those things. with the objective of maximizing profit. according to what society as a whole would want. by constantly assessing the opportunity costs of our choices
by constantly assessing the opportunity costs of our choices
If an economist is trying to predict the outcome from particular causes and effects, what is the best tool(s) for her to use in order to test out her economic model? = mathematical functions environmental absolutes dialectic dialogue
mathematical functions
Scarcity is a condition that is everywhere and always, since it is based upon two assumptions that reflect permanent universal conditions. The assumptions are that are limited wants. more output satisfies more wants the world has limited productive resources
more output satisfies more wants the world has limited productive resources
If a model can predict outcomes (accurately), what can be assumed? ]The assumptions of the model are generally accurate. The theory behind the model needs to be refined. The model is valuable.
the model is valuable the assumptions of the model are generally accurate
