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Economics is all of the following except:
A. a subject that studies incentives.
B. a subject that tells governments what they must do.
C. a social science.
D. a subject that is divided into microeconomics and macroeconomics.
Ā Which of the following BEST describes macroeconomics?A) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.B) It studies the choices that individuals and businesses make when coping with scarcity.C) It examines how the choices that individuals affect governments.D) It is not a social science because its predictions cannot be tested.E) Proving causation is never a problem for macroeconomics.
Ā
''Banks do not really create money , do they? was the challenge that a retired professor of economis was known to have used in his upper division american economic historic course to ascertain what his students remembered fron introductory macroeconomics about the creation of money. He reported that few students were confident enough or remenbered enough to reply correctly to his question . How would you reply?
