Economists May Disagree About Policies Because They

question 6

Multiple Choice

Economists may disagree about policies because they:

• A)approach the issue using the same sets of values.
• B)use different economic models.
• C)enjoy disagreeing with each other.
• D)only consider issues in positive economics.

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Definitions:

Substitute Goods

Products or services that can replace each other in use or consumption, leading to a choice between them based on price, preference, or other factors.

Normal Goods

Goods for which demand increases as the income of the consumer increases, and falls when the consumer's income decreases.

Cross Elasticity of Demand

measures how the quantity demanded of one good responds to a change in the price of another good, indicating substitutes or complements.

Substitute Goods

Products or services that can be used in place of each other because they fulfill similar needs or desires, often influencing the demand and price of goods.