What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?

Q: With which of the problems faced by every society is microeconomics primarily concerned

A: Because individuals have limited resources at their disposal, the problem of scarcity requires them…

Q: Which of the following concepts is NOT a basic assumption of economics? a. scarcity b. demand for…

A: Economics is a vast area of study that deals with various agendas, models, theories, rationales, and…

Q: What are the fundamental difference of Classical Economist and Marginalist?

A: Marginalists make economic decisions over particular unit or marginal unit instead of making…

Q: Command economies are most likely to encourage an underground economy? true or false

A: The government determines in a command economy what goods and services will be generated, and what…

Q: Why do you think economic models are important in econometric? Explain.

A: it is the application of the statistical method to economic data in order to give empirical content…

Q: true or false Economic models must mirror reality or they are of no value.

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Differentiate economics as a social science and applied science?

A: Economics is a social science that studies the interactions between individuals and society.…

Q: Richard Thaler provides three criticisms of the homo economicus model in his book “Missbehaving”.…

A: With the first salvo of wit that will characterise the entire book, Richard Thaler claims that…

Q: Is the economic system self-equilibrating? Does Schumpeter agree?

A: As per classical economists economy is self correcting economy which depends on self adjusting…

Q: Which of the following is not correct about most economic models? A) They are composed of equations…

A: An economic model is a simplistic representation of an economic phenomenon. It is a theoretical…

Q: fusing horizons of diverse perspectives and views, what are two-possible positive consequences?

A: The leadership of the entire system is rooted in diversity. The system-wide approach thrives by…

Q: What is an real-life example of a opportunity cost?

A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…

Q: Since everyone has the same needs, we can therefore say that scarcity is an absolute term. Is this…

A: Scarcity is a very important economic problem which shows the difference between the unlimited wants…

Q: Determine if the following statement is normative or positive: Households that participate in SNAP…

A: SNAP: SNAP advances long-haul wellbeing and prosperity, particularly for kids. Research shows that…

Q: What is the best test of an economic theory?   a. Whether it produces implications that are…

A: Economic theory: It is a vent for research in the economic areas. these theories are used to solve…

Q: Explain the inductive and detective methods of economics not more than 300 words. 100 to 150 words…

A:

Q: True or false? Scarcity in economics could be eliminated but poverty could not.

A: Scarcity is gradually considered as one of the basic or primary problem of the economy, the wants…

Q: Nowadays, is mathematics essential for understanding economic principles?

A: The principles of economics are generally about satisfying the unlimited wants of the consumer with…

Q: In what ways do human decision making differ from rational conventional economic theory

A: The rational behaviour is a decision-making process in which chgoices are made in order to obtain…

Q: If two alternative economic models are offered, other things equal, we would

A: An economic model is a simplified version of reality that is used to understand economic behavior by…

Q: Which of the following is an INCORRECT statement regarding economic models? An economic model is…

A: Economic Model : An Economic Model can be defined as the theoretical model of the real life…

Q: Economic models must mirror reality or they are of no value.  When economists make normative…

A: 1. The given statement is false. The economic models are considered as the simplifications of the…

Q: What is the best and the worst economic theory of adam smith as an economist?

A: Adam Smith, the father of modern economics, was a Scottish economist, philosopher, and author in the…

Q: What three institutions influence economics the most? Explain how each influences economics and…

A: Economics is referred as a social science. The word 'Economics' is originated from the GREEK word…

Q: Wealth is a means for obtaining material gains in human life. Wealth is of no meaning if it cannot…

A: The economics is studied due to problem of scarcity of resources. The desires of the people are…

Q: Which of the following statements about economic models is correct? a) models are built to mirror…

A: In economics, economic agents have to make rational choices so that the limited resources in the…

Q: Explain why scarcity leads to tradeoffs

A: In economics a fundamental concept is that of scarcity. Contrary to its colloquial use, economic…

Q: Explain the Heckscher-Ohlin theory using real World examples.

A: The Heckscher-Ohlin model is an economic theory that states countries should export what they can…

Q: How do economists address the 3 central questions that economists ask to better understand decision…

A: While addressing the three central questions, the economist assumes that decision markers seek to…

Q: In what ways is economics a science and why do economists make assumptions? What is the importance…

A: There are four factors of production which are the economic resources and are as follows:  Land is…

Q: When we say ceteris paribus, it means all other things remain equal all other things remain positive…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: How does the study of economics depend upon the phenomenon of scarcity?

A: Scarcity is known as the excess of demand over supply in an economy at a particular price.

Q: Is the international gold standard is an example of spontaneous order?

A: The international gold standard is a system where gold or currency which is convertible into gold at…

Q: What is the difference between positive and normative economic analysis? Give an example for each.

A: Positive economics focuses on the description(explanation) of the state of economy…

Q: The Department of family planning estimated that it would costs a middle-income family $550,530 to…

A: Given: Cost of raising a child from age 1-17=$550530

Q: Explain how Marx's principle may or may not apply to today

A: Marx believed the struggle could eventually proceed to a revolt wherein the lower classes would…

Q: Why is scarcity an essential concept in economics?

A: Social science studies human behavior in different societies, the relationships, and the functions…

Q: How are Milton Friedman’s economic theories applied?

A: Milton Friedman is widely considered to be one of the most important economists and political…

Q: Do economists have any particular expertise at making normative arguments? In other words, they have…

A: Both positive and normative economics are the branches of modern economics. The positive analysis…

Q: Why is scarcity central to economics?

A: The economics is considered to be a very vast area of study, where there are various entities in…

Q: Use the theory of the invisible hand to analyze events in everyday life.

A: Answer: The theory of invisible hand is given by the classical economist Adam smith. According to…