Economists Make Use of Assumptions,some of Which Are Unrealistic,for the Purpose

question 47

Multiple Choice

Economists make use of assumptions,some of which are unrealistic,for the purpose of

• A)teaching economics to people who have never before studied economics.
• B)advancing their political agendas.
• C)developing models when the scientific method cannot be used.
• D)focusing their thinking.

Illustrate the relationship between market conditions and the operations decisions of firms in the short run versus the long run.

Define key terms related to perfect competition, such as break-even point, shutdown point, and perfect knowledge.

Examine the role of perfect mobility of resources and perfect knowledge in defining a perfectly competitive market.

Understand the concepts and implications of different types of manipulations in experimental research.

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Definitions:

Moral Development

The process by which individuals learn to distinguish right from wrong, develop attitudes and behaviors toward others based on social norms, and evolve in their understanding of justice.

Kohlberg's Theory

A theory proposed by Lawrence Kohlberg that suggests human moral development progresses through a series of stages.

Criticisms

The expression of disapproval based on perceived mistakes or faults.

Emerging Adulthood

This is a phase of the life span between adolescence and full-fledged adulthood which encompasses late teens through the twenties, marked by exploration of identity.