Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Question
Chapter 1, Problem 10P
To determine
(a)
Distinction between selfishness and self-interest.
To determine
(b)
Effects of inaction.
To determine
(c)
Difficulty in observing and predicting in economics as compared to chemistry.
To determine
(d)
Reasons that leads to an economistobserving group behavior rather than individual behavior.
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Students have asked these similar questions
Explain how people respond to incentives and how markets turn self-interested behavior to the benefit of consumers.
A). List the Ten Principles of Economics (just the titles). Group them in three categories: (i). How people make
decisions, (ii). How people interact, and (iii). How the economy as a whole works.
B). Define opportunity cost. Be precise with the words used.
C). Draw a Circular Flow diagram.
Q.4
Microeconomics
How incentives affect people’s behavior.
The question: Does the seat belt law make people safer? You might talk about the role of incentives.
The word "safer" meaning more safe is correct. In the most general terms, an incentive is anything that motivates a person to do something. When we're talking about economics, the definition becomes a bit narrower: Economic incentives are financial motivations for people to take certain actions. However, the discussion is focused on seat belt law and what are incentives surrounding it.
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