Category: Application of Economics

A. A lawyer employed by Renault addressing the impact of air bags on passenger safety.
B. An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses
C. An economist employed by the Trades union congress doing research on the impact of trade policy on workers’ wages
D. A radio talk show host collecting data from listeners on how capital markets respond to taxation

A. To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
B. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.
C. To model the benefits of trade. an economist assumes that there are two people and two goods
D. To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

A. Usually made of wood and plastic
B. built with assumptions.
C. useless if they are simple.
D. created to duplicate reality.

A. an advance in technology
B. an increase in the labor force
C. an increase in the capital stock
D. a reduction in unemployment

A. inefficient
B. normative
C. unattainable
D. efficient

A. Macroeconomic
B. Microeconomics
C. statements of description that can be tested
D. Statements of prescription that involve value judgments.