An economic model is a complex version of reality used to analyse real world economic situation True or False

Identify a recent purchase that you made, recently, and determine how scarcity influenced your purchase decision.

Herbert Simon, the Novel Prize-winning economist, described the rational model of decision-making in what way?

Compare and contrast Macroeconomics and Microeconomics. Give specific details and examples.

Scarcity means what?           time and resources spent researching a cure for breast cancer are time and resources that could have been spent researching cures for lymphoma.     25 year olds might be more willing to start a family than 35 year olds.     government funding of federal programs equals the amount paid in taxes.     all consumers are assumed to have limited financial resources.     money flows in a circle.

Define economics. What are the differences between microeconomics and macroeconomics.

Explain & give examples of the relationship between reality and discourse.

The field of economics is derived from the fact that humans all make rational choices. humans are self-interested. humans respond to incentives. the world has limited resources.