Economists and Psychologists Are Often on Opposite Sides of the Economic

question 161

Multiple Choice

Economists and psychologists are often on opposite sides of the economic growth debate.The nature of the debate is such that

• A)economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier.
• B)economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier.
• C)economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers.
• D)economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.

---

Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with their income at current prices.

Consumer Demand Curve

A graphical representation showing the quantity of a product that consumers are willing and able to purchase at various price levels.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Income Effect

The change in an individual's consumption resulting from a change in their real income, due to price changes or other factors.