Importance of questioning how economic variables

Assignment Help Business Economics
Reference no: EM132117690

1. Critical thinking is one of the most important skills to learn in any course. One of several questions economists should ask themselves is how variables are defined. Which of the following is an example that illustrates the importance of questioning how economic variables are defined?

A New Jersey study shows that when the minimum wage increases, the unemployment rate decreases. The study concludes that an increase in the minimum wage benefits the overall economy.

The city of Washington D.C. raises the tax on gasoline because it needs to raise tax revenues and decrease its budget deficit. After the tax raise the city discovers that overall tax revenues have declined.

Data show that average wages in the economy have declined. The study concludes that the average person in the economy is worse off financially.

The production possibilities curve shifts out. This means that unemployment has decreased.

Reference no: EM132117690

Questions Cloud

What major features of a business : What major features of a business are important for understanding the role of information systems?
What goods or devices in modern society have we adopted : What goods or devices in modern society have we adopted in modern society that have made our lives easier.
Compute the product cost per container of frozen yogurt : Straightforward Problem on Absorption versus Variable Costing - Compute the product cost per container of frozen yogurt under variable costing
Explain the response by the canadian wal mart : The New War over Wal-Mart Today, Wal-Mart employs more people-1.7 million- than any other private employer in the world. With size comes power.
Importance of questioning how economic variables : Which of the following is an example that illustrates the importance of questioning how economic variables are defined?
Does wal-mart behave any worse than its competitors : The New War over Wal-Mart Today, Wal-Mart employs more people-1.7 million- than any other private employer in the world. With size comes power.
Explain the potential effect of a union on the wage rates : If the market for retail labour is competitive, explain the potential effect of a union on the wage rates. Draw a graph to illustrate your answer.
Who will benefit from drilling for oil in the gulf of mexico : New technology has allowed oil to be pumped from much deeper offshore oil fields than before. For example, 28 deep ocean rigs operate in the deep waters.
Will canada eventually run out of water : Water is a natural resource that is plentiful in Canada but not plentiful in Arizona. Will Canada eventually run out of water?

Reviews

Write a Review

Business Economics Questions & Answers

  Curve crossing average variable cost and average total cost

Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in the dog-grooming service market. JL Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing ave..

  Illustrate the relevant demand and supply curve analysis

In each of the following scenarios relating to the market for the NBA League Pass (an add-on cost to watch more NBA games than from regular cable TV), illustrate the relevant demand and supply curve analysis, designating the original equilibrium pric..

  Charitable university benefactor

A charitable university benefactor has decided to donate a large amount of money for student scholarships.

  Distinguish between every consumer

Consider a monopoly that can distinguish between every consumer, knows each consumer's willingness to pay and may charge different prices.

  Conduct a hypothesis test to investigate

Conduct a hypothesis test to investigate whether there is a significant relationship between X and Y, using a= .10.

  Employment rate increased to the prerecession level

In 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession level of 62 percent, How many more people would be working? By how much..

  Judy should finance the expansion with the bank loan

The cost of expanding trade credit using the approximation formula is less than the cost of the bank loan. However, the true cost of the trade credit when compounding is considered is greater than the cost of the bank loan.

  Definition of entrepreneurship

Peter Drucker’s definition of entrepreneurship. What are specific aspects of the definition that are important to you? Drucker provided four possible sources of change. What are they? Which one do you think is most important?

  Approximately what exchangerate will the returns

Assume that the U.S. interest rate is 5%, the European interest rate is 2%, andthe future expected exchange rate in 1 year is $1.224. At approximately what exchangerate will the returns between the United States and Europe be equalized?

  Inspired by power and wholesome goodness of amazing oat

The mission statement for Quaker Oats cites its origins, “inspired by the power and wholesome goodness of the amazing oat.” Frito-Lay looks a little more to the present, citing its mission “To be the world’s favorite snack and always within arm’s rea..

  Distinction between general and specific human capital

Which of the following is a distinction between general and specific human capital?  The gains from specific training in human capital tend to go to the:

  Draw the new budget constraint consumer faces under plan

Suppose that doctors’ visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors’ visits and a composite good that costs $1 per unit. Draw a graph that illustrates the consumer’s budget constraint..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd