Chapter 1: Q 1.3 (page 1)
Evaluate the role that rational self-interest plays in economic analysis.
Rational self-interest leads people to achieve their respective goals which ultimately leads to efficient outcomes for the nation.
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In what way do small talk and gossip represent the use of simplifying assumptions?
Explain why economics is a science.
Why do you suppose that second-and third-generation females of U.S. immigrant families are found to be more likely to accept working alongside males in higher-paying jobs?
Maneesha has completed an analysis of the market for prescription medication. She has determined that the policymaker should act to prevent an increase in the price of this drug on the grounds that the mainly elderly consumers of the medication already have spent their lives paying too much for pharmaceuticals. They ought not to have to pay higher prices, Maneesha has concluded, so the government should act to halt any further price increases in the market. Has Maneesha applied positive or normative economic analysis?
Identify the three basic economic questions and the two opposing sets of answers.
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