ECON-101 Lecture Notes - Lecture 2: Agricultural Subsidy, Normative Economics, Department Of Finance Canada
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Document Summary
The economist as scienist economists try to address their subject with a scienist"s objecivity. Two economic models will be used to answer these two quesions. An economic model is a simple representaion of something complex. It provides us the main features of what we want to examine in an economy. The scieniic method: observaion, theory, and more observaion. Circular low diagram: a visual model of the economy that shows how dollars low through markets among households and irms. Households buy and consume goods and services in the markets for goods and services. They own and sell factors of producion in the markets for factors of producion. Firms produce and sell goods and services in the markets for goods and services. They hire and use factors of producion in the markets for factors of producion. Idenify the parts of the circular-low diagram immediately involved in the following transacions: mary buys a car from general motors for .
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Related Questions
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.