Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 2, Problem 11P
To determine
(a)
Whether it is a Positive or negative incentive along with the reason.
To determine
(b)
Whether it is a Positive or negative incentive along with the reason.
To determine
(c)
Whether it is a Positive or negative incentive along with the reason.
To determine
(d)
Whether it is a Positive or negative incentive along with the reason.
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Students have asked these similar questions
Which of the following is an example of an incentive?
A. Purchases from a store earn the buyer rewards such as discounts on future purchases.
B. Heavy taxes on unhealthy foods.
C. Government campaign to get people to exercise
D. Selling someone a product that you made.
Write the definition of the Benefit-Cost Ratio?
Instructions
There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers.
a. What are economic profits? Explain in detail.
b. Do economic profits harm the interests of consumers? Explain in detail.
c. Can there be a socially useful outcome when economic profits exist? Explain in detail.
d. Do lower prices always benefit consumers? Explain in detail.
Chapter 2 Solutions
Exploring Macroeconomics
Knowledge Booster
Similar questions
- Why is it important to perform a cost-benefit analysis when making a decision? A-It helps you to make rational choices. B-To make sure that the cost is greater than the benefit of a decision. C-It is required by the government in making economic decisions. D-It allows you to see the price of certain goods and services.arrow_forwardIn which kind of market, the consumer gets benefitted and whyarrow_forwardWhich of the following best demonstrates the influence of economic factors on consumer decision-making? a. A consumer buys a Lexus after her neighbors and garden club pals each buy one. b. A married couple with three young children purchase a minivan. c. A blue collar worker holds off on buying a new truck, pending potential layoffs at work. d. A young professional buys a utility vehicle for off-road exploring.arrow_forward
- Network externalities are important for a. gas stations. b. AARP, an organization that advocates for seniors. c. slot machines d. music concertsarrow_forwardChoose the statement that does not describe Microeconomics. a. The effect of an increase in the Tax on cigarettes on cigarette sales b. The purchasing decisions that an individual consumer makes. c. The effect of increasing the money supply on inflation. d. All of thesearrow_forwardReview the six core principles of economics, from topic 2 this week. People choose All choices involve costs (opportunity cost) People respond to incentives in predictable ways Economic systems influence choices and incentives Voluntary trade creates wealth The consequences of choices lie in the future Then, write a 500-600 word essay on how these core principles apply to your most recent online activity as a consumer. In your work, be sure to include a definition of the new media economy.arrow_forward
- Do you think that it is better to be efficient or to have a choice about prices, color, size, etc.? Why or why not? Do you feel that choices about a good help to offset the inefficiencies?arrow_forwardTypes of demand in economicsarrow_forwardWhat are the pros and cons of market economy?arrow_forward
- What is economics? A social science that teaches one how to cope with scarcity. A discipline that quantifies the values of assets. A quantitative science to analyze business cycles. A science that teaches firms and individuals how to maximize profits.arrow_forwardThink of an economic decision you made recently wherein the benefit outweighed the cost (or the cost outweighed the benefit).arrow_forwardBase on your understanding illustrate what is economicsarrow_forward
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