How Costly can it be to society and a country if a firm refuses to specialize and exchange?
EXTREMELY COSTLY. The main purpose in any firm/business is to specialize and
exchange. If there was no specialization they wouldnt be competitive at all against an
Why do economists prefer to speak of demands arising out of "wants" rather than "needs"?
Because with wants you wouldnt need it if it wasnt there or didnt exist. For example,
gasoline is a want. Although it may feel like a need because we have cars but we
Californias Minimum Wage
1. Issue Is this raise going to help or hurt Californias economy in the long run?
2. Who is this legislation going to hurt? This is a threat to mostly small businesses and some
businesses that rely on and employ low-wage workers c
Why do economists emphasize efficiency as an important goal of public policy?
Economists address efficiency because it is arguably, the goal most suited to economic analysis.
You are a senator considering how to vote on a policy that would increase the ec
What does it mean to begin to think like an economic naturalist?
To begin to think like an economic naturalist means to apply principles of economics in your daily life and
decisions. Thinking like an economic naturalist could be best described as a ratio
Explain why you would expect supply curves to slope upward on the basis of the principle of increasing
If there are increasing opportunity costs, then for every extra unit that you consume, you are
gaining extra utility so your curve sho
Why does a consumers price elasticity of demand for a good depend on the fraction of the consumers
income spent on the good?
If a consumer only spends a small fraction of their income on a product, then price will be
inelastic. However, if the consumer sp
What's the difference between change in quantity demanded and change in demand? Why is it
downward sloping? What's the difference between change in quantity supplied and change in supply?
Why is it upward sloping? What is equilibrium and how are shortages