Explain the natural order hypothesis.

The idea that standard economic model is a good predictor of behavior if people have sufficient time to learn is the __________preference hypothesis.

**** Which of the following can best be characterized as a subject of macroeconomics? an examination of the production of a good an examination of how a change in demand or supply impacts the price of a good an examination of specialization O an examination of monetary policy

The Black Death: (a) Wages were higher after the Black Death because of diminishing returns. Our production model exhibits diminishing returns to labor: each additional unit of labor increases output by less and less. So if the amount of labor is reduced, the marginal product of labor — and hence the wage — increases. The reason is that capital stays the same: each remaining worker is able to work with more machines, so his productivity rises. In fourteenth-century Europe, the marginal workers could move to better land and discard old broken-down tools. Graphically, this can be seen by considering the supply-and-demand diagram for labor in Figure 4.2(b). If the supply of labor shifts back (because a large number of workers die), the equilibrium wage rate increases. Draw this graph — including the shift in the labor supply curve — to see the result for yourself. Mathematically, the result can be seen in the solution for the wage rate in our production model,…

The Pareto efficiency is a simple idea, but it is difficult to achieve. Why is this? Provide an example.

It is often said that a good theory is one that can be refuted by an empirical, dataoriented study. Explain why a theory that cannot be evaluated empirically is not a good theory

The methodology of ________ economics says that models should be based on predictions and not assumptions.

Several factors contribute to the circular flow model of the market, including factors of production. Which of the following factors of production refers to man-made items used to produce goods?         capital resources         human resources         natural resources         general resources

This is for Macroeconomics

In the Romer model presented in class, a firm can allocate labor between production and research and development (technology). What happens if an economy allocates all of its labor to production and none to technology?   it will reduce output it will slightly reduce the number of ideas it generates it will increase the number of ideas it generates it will not generate any ideas None of these answers are correct.