Behavioral economists assume that people are emotional and can get distracted, thus influencing their decisions. For example, if someone wanted to lose weight, the person would study which healthy foods to eat and adjust their diet (rational decision); however, when at a restaurant, an individual...
What do economists mean when they say the behavior is rational? Explain how economists are both scientists and policymakers. Explain what do economists mean when they say "ceteris paribus". What do economists mean by "inflation"? Economists say that individuals make decisions at the ...
Economists assume that the goal of consumers is to: a. do as little work as possible to survive. b. be as happy as possible given their income. c. expend all of their income. d. consume as much as possible. Economists assume ...
Assumptions make complex economic processes simple. For example, suppose we have to understand the complex process of international trade. Economists can assume a scenario with just two countries. Furthermore, they may assume that each country specializes in just one product. Thus each country exports...
To make the example simple, we assume that there is only one type of automobile factory and that all oil rigs are identical. In order to know “how much” capital of each type there is, all we need to do is count. Table 2 shows the number of each of these “real assets”: Column...
In economics, sunk costs refer to the costs incurred in the past that cannot be recovered. For example, if a bakery signs an annual lease for property, then the rental cost becomes a sunk cost that is not affected by how many...
Why do economists often assume that there are no possibilities for arbitrage? According to Keynes, why might aggregate demand be too low in an economy? Why are economists generally opposed to price controls? Marx's economic theories have been discredited. Why is he the most studied author in ...
Economists say that individuals make decisions at the margin. What does this mean? 1. What is economics? 2. What is the difference between microeconomics and macroeconomics? How is the opportunity cost of economic growth in Chile determined? In business and...
Something that has already occurred and can be tested explains positive economic statements. Positive economic analysis is a... Learn more about this topic: Positive vs. Normative Economics | Differences & Examples from Chapter 1/ Lesson 11 ...