MICROECONOMICS MANKIW PDF
N. Gregory Mankiw is professor of economics at Harvard University. taught macroeconomics, microeconomics, statistics, and principles of econom- ics. Microeconomics 6th Edition N Gregory Mankiw [PDF] [EPUB] Nicholas Gregory Mankiw (/? m æ n. k j u? /; born February 3, ) is an. myavr.info Cand55 Ttt0s5 the difference between microeconomics and macroeconomics.
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N. Gregory Mankiw is Professor of Economics at Harvard University. He began . Microeconomic Thinking and Macroeconomic Models ▻ FYI Nobel. Because microeconomics is such an important foundation for business, engineering . David A. Dilts, Introduction to Microeconomics, E Fort Wayne: Google is proud to partner with libraries to digitize public domain materials and make them widely accessible. Public domain books belong to the public and we .
None of the above are correct; the economy will never be able to reach point L. Page 62 Full file at https: For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails, a.
This answer cannot be determined from the graph. Refer to Figure , Panel a. Production at point K is a. Page 63 Full file at https: Production is a. The movement from point M to point K could be caused by a. The opportunity cost of moving from point J to point L is a.
Page 64 Full file at https: The opportunity cost of moving from point M to point L is a. The opportunity cost of moving from point K to point L is a. The opportunity cost of one cup of coffee is highest when the economy produces a.
To gain 2 donuts by moving from point L to point M, society must sacrifice a. More than one of the above is correct. Challenging Copyright Cengage Learning. Page 65 Full file at https: Refer to Figure , Panel a and Panel b.
Page 66 Full file at https: Production at point Y is a. The movement from point W to point Y could be caused by a. Page 67 Full file at https: The opportunity cost of one sofa is highest when the economy produces a. To gain 2 tractors by moving from point W to point V, society must sacrifice a.
Page 68 Full file at https: The tradeoff between the production of tractors and sofas changes. Production of 2 tractors and 10 sofas becomes efficient. Production of 6 tractors and 14 sofas becomes possible. The opportunity cost of a sofa is higher at all levels of sofa production. Which of the following events would explain the shift of the production possibilities frontier from A to B?
The economy experienced a technological advance in the production of books. More capital became available in the economy. More labor became available in the economy.
Application Copyright Cengage Learning. Page 69 Full file at https: The shift of the production possibilities frontier from A to B illustrates a. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?
The shift of the production possibilities frontier from A to B can best be described as a. Page 70 Full file at https: Which of the following combinations of points are both efficient and attainable for this economy? Which of the following statements is true about point G for this economy? Point G is currently unattainable. Point G is efficient.
At point G, more cakes are produced than cookies. There is unemployment at point G. Page 71 Full file at https: Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology? One difference between points F and G is that a. Point G is unattainable with current resources, but point F is attainable. All resources are fully employed at point F but there is unemployment at point G. More output can be produced at point F but no additional output can be produced at point G.
This economy produces more cookies at point G than at point F. Table shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from bushels to bushels? Page 72 Full file at https: What is the opportunity cost of an increase in the production of wheat from bushels to bushels? The opportunity cost of a bushel of corn does not depend on how many bushels of wheat are being produced. The opportunity cost of a bushel of corn increases as more corn is produced.
The opportunity cost of a bushel of corn decreases as more corn is produced. The opportunity cost of a bushel of wheat decreases as more wheat is produced.
Principles Of Economics, 7th Edition By N. Gregory Mankiw[ Dr. Soc]
Based on the values in the table, the production possibilities frontier is a. Page 73 Full file at https: Which of the following combinations of corn and wheat is not currently attainable but would be attainable if there was an improvement in overall production technology? Home is a country that produces two goods, pears and cellular phones. Last year, Home produced bushels of pears and cellular phones.
This year it produced bushels of pears and cellular phones. Given no other information, which of the following events could explain this change? Home experienced increased unemployment. Home experienced a decline in pear-producing technology. Home experienced an improvement in cellular phone-making technology.
Home experienced a reduction in resources. Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50, textiles and computers. This year it produced 45, textiles and computers. Given no further information, which of the following events could explain this change?
Indiadesh decreased unemployment. Indiadesh experienced an improvement in textile-making technology. Indiadesh experienced an improvement in computer-making technology. Indiadesh experienced a reduction in resources. Easy Copyright Cengage Learning. Page 74 Full file at https: If this economy devotes all of its available resources to producing apples, then it will produce a. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?
Page 75 Full file at https: If this society moves from point U to point V, a. If this society is producing at point T, a. The opportunity cost of moving from point U to point R is a. Page 76 Full file at https: Consider the production possibilities frontier for an economy that produces only sofas and cars.
The opportunity cost of each car is a. When society moves from point A to point B, a. The field of economics is traditionally divided into two broad subfields, a.
Page 77 Full file at https: Microeconomics is the study of a. Macroeconomics is the study of a. A microeconomist — as opposed to a macroeconomist — might study a. Which of the following areas of study typifies microeconomics as opposed to macroeconomics? Page 78 Full file at https: Which of the following would likely be studied by a microeconomist rather than a macroeconomist? A macroeconomist — as opposed to a microeconomist — might study the effect of a. A macroeconomist - as opposed to a microeconomist - would study a.
Page 79 Full file at https: Which of the following areas of study typifies macroeconomics as opposed to microeconomics?
Principles Of Economics, 7th Edition By N. Gregory Mankiw[ Dr. Soc]
Which of the following would likely be studied by a macroeconomist rather than a microeconomist? Which of the following statements best captures the relationship between microeconomics and macroeconomics? For the most part, microeconomists are unconcerned with macroeconomics, and macroeconomists are unconcerned with microeconomics.
Microeconomists study markets for small products, whereas macroeconomists study markets for large products. Microeconomics and macroeconomics are distinct from one another, yet they are closely related. Microeconomics is oriented toward policy studies, whereas macroeconomics is oriented toward theoretical studies.
Page 80 Full file at https: If this economy devotes all of its resources to the production of gadgets, then it will produce a. Page 81 Full file at https: Suppose this economy is producing at point B. The economy does not have enough resources to produce more of either product. The economy is getting all it can from the scarce resources available. Page 82 Full file at https: The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately a.
The opportunity cost of obtaining 20 additional widgets by moving from point C to point D is a. The opportunity cost of obtaining approximately 20 additional gadgets by moving from point B to point C is a. Opportunity cost Production possibilities model Copyright Cengage Learning. Page 83 Full file at https: The opportunity cost of obtaining 30 additional gadgets by moving from point B to point A is a. The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is a.
Which of the following statements is true about the opportunity cost of obtaining approximately 20 additional gadgets by moving from point B to point C? The opportunity cost is the 70 gadgets that are no longer produced. The opportunity cost is zero because the economy does not give up producing widgets to go from producing at point B to point C. The opportunity cost is greater than zero widgets but less than 70 gadgets.
The opportunity cost is greater than 70 gadgets. Page 84 Full file at https: Page 85 Full file at https: When economists are trying to explain the world, they are a.
When economists are trying to help improve the world, they are a. Which of the following statements is correct about the roles of economists?
N. Gregory Mankiw Books
Economists are best viewed as policy advisers. Economists are best viewed as scientists. In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists. In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers.
The difference between economists speaking as scientists or policy advisers boil down to the difference between a. Normative statements are a. Positive statements are a.
Positive statements are not a. Normative statements are not a.
A statement describing how the world is a. A statement describing how the world should be a. One way to characterize the difference between positive statements and normative statements is as follows: Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future.
Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be.
Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation. Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements. Economists view positive statements as a. Economists view normative statements as a.
Economists speaking like scientists make a. Economists speaking like policy advisers make a. When economists make positive statements, they are a. When economists make normative statements, they are a.
When economists make a. You know an economist has crossed the line from policy adviser to scientist when he or she a. You know an economist has crossed the line from scientist to policy adviser when he or she a.
In principle, we can a. Evaluating statements about how the world should be involves values as well as facts. Positive statements can, in principle, be confirmed or refuted by examining evidence. Normative statements can be judged using data alone. Deciding what is good or bad policy is not just a matter of science. When an economist evaluates a positive statement, he or she is primarily a.
Normative conclusions a. Which of the following is an example of a positive, as opposed to normative, statement? Inflation is more harmful to the economy than unemployment is. If welfare payments increase, the world will be a better place. Prices rise when the government prints too much money.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency. When the minimum wage is increased, unemployment is a predictable consequence. The income tax rate should be increased to offset the budget deficit.
Increasing government spending is the best way to help the economy move out of a recession. More than one of the above are positive statements. Which of the following is a positive, as opposed to a normative, statement? Antitrust laws should be used to prevent further concentration in the wireless telephone service market. The wireless telephone service market is too highly concentrated. Which of the following statements is an example of a positive, as opposed to normative, statement?
Americans deserve a cleaner environment. Reducing emissions reduces days missed from school due to asthma. All Americans are entitled to quality health care. Economic policies should focus on improving equality. Which of the following is not an example of a positive, as opposed to normative, statement?
Higher gasoline prices will reduce gasoline consumption. Equality is more important than efficiency. Trade restrictions lower our standard of living. If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money.
Which of the following is an example of a normative, as opposed to positive, statement? Universal health care would be good for U. An increase in the cigarette tax would cause a decrease in the number of smokers. A decrease in the minimum wage would decrease unemployment. A law requiring the federal government to balance its budget would increase economic growth.
Gasoline prices ought to be lower than they are now. The federal government should raise taxes on wealthy people. The social security system is a good system and it deserves to be preserved as it is.
All of the above are normative statements. Reducing tax rates on the wealthy would benefit the nation. If the national saving rate were to increase, so would the rate of economic growth. Following the most recent recession, the economy is recovering at a slower than usual pace.
To stimulate the economy during the most recent recession, the federal government increased spending. In response to the most recent recession, the federal government extended the duration of unemployment benefits. Which of the following is an example of a normative - as opposed to a positive - statement?
The discount rate is the interest rate the Federal Reserve charges banks to borrow funds. The US income tax rate increases with the amount of income earned. The government should increase the tax on gasoline. The US unemployment rate increased to 10 percent in On the other hand, Which of the following is the best explanation for why President Harry Truman once said that he wanted to find a one- armed economist? President Truman received input from so many economists that he only wanted one view from each.
President Truman thought economists should analyze policies but not make or enforce them. Economists understand that most policy decisions involve trade-offs so they are likely to present multiple views of policies. A one-armed economist would conduct only positive analysis and no normative analysis. The Council of Economic Advisers a.
Economic thinking U. Duties of the Council of Economic Advisers include a. In addition to advising the president, one duty of the Council of Economic Advisers is to a. The Economic Report of the President a. Economists at which of the following offices help formulate spending plans and regulatory policies? Office of Management and Budget b. Department of the Treasury c. Congressional Budget Office d. Economists at the Department of the Treasury a. The president of the United States receives tax policy advice from economists in the a.
Federal Reserve. Department of Justice. Department of the Treasury. Congressional Budget Office. The design of tax policy is one of the responsibilities of economists who work at the a. Council of Economic Advisers. A duty of economists at the Department of Labor is to a. Analysis of data on workers and those looking for work is conducted by economists at the a. Office of Management and Budget. Department of Labor. Economists at the Department of Justice a.
The nation's antitrust laws are enforced by economists at the Department of a. Health and Human Services. Some, but not all, government economists are employed within the administrative branch of government.
Which of the following government agencies employs economists outside of the administrative branch? Economists who are primarily responsible for advising Congress on economic matters work in which agency? Congress relies on economists at the Congressional Budget Office to a. The President receives economic policy advice from economists at each of the following except a.
The Federal Reserve a. Economists hold many positions advising the president and Congress including a. All of these are possible positions that economists hold. John Maynard Keynes believed the ideas of economists to be a. One difference between a hypothetical benevolent king implementing the best policy and the president implementing the best policy in the real world is the president has to be concerned about a.
Policymaking in a representative democracy a. Economic thinking Economic systems Copyright Cengage Learning. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario? This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons.
This is an unlikely occurrence. Most of the time, policymakers follow the advice of economists and institute the most efficient policies. This would never happen.
Policymakers always follow the advice of economists. The growth rate of the economy last year was higher than any other year in the last decade. The federal government reduced spending in the last quarter of the fiscal year. The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy.
The federal government should decrease unemployment benefits to stimulate the economy out of the recession. The federal government should decrease coverage of unemployment benefits to stimulate the economy out of the recession. Congress should agree on lower government spending for the next fiscal year. The Federal Reserve Bank should increase interest rates in response to the higher-than-expected inflation in the economy.
The unemployment rate last year was lower than any other year in the last century. Harry Truman b. George Bernard Shaw c. John Maynard Keynes d. President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would a. Economists sometimes give conflicting advice because a. The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in a.
Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement? One economist believes everyone should pay the same percentage of their income in taxes; another economist believes that wealthier citizens should pay a higher percentage of their income in taxes.
One economist believes that manufacturing firms should face greater regulation to preserve the environment; another economist believes the government should not intervene in free markets. One economist believes that equality should be valued over efficiency in policy decisions; another economist believes that efficiency should be valued over equality in policy decisions.
Differences in scientific judgment between economists are similar to all of the following except a. Sometimes economists disagree because their values differ. One economist believes that when income taxes are cut, people will increase their spending; another economist believes that when income taxes are cut, people will increase their saving.
One economist advises against increases in sales taxes because she thinks such increases are unfair to low- income people; another economist disputes the idea that increases in sales taxes are unfair to low-income people. One economist believes that, prior to the Civil War, slavery contributed to economic growth in the South; another economist believes that slavery held back the South's economic growth.
Joe and Fred are economists. Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. In this example, Joe and Fred a. Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?
Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed.
Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik a. Which of the following statements is correct about the extent of disagreement among economists? There is a great deal of agreement among economists on virtually every economic issue. There is a great deal of agreement among economists on many important economic issues. All disagreements among economists are attributable to differences in their values.
All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories. A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that a.
A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following? Tariffs and import quotas usually reduce general economic welfare. A large federal budget deficit has an adverse effect on the economy. Minimum wage increases unemployment among young and unskilled workers. A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions.
Which of the following is not one of those propositions? The United States should not restrict employers from outsourcing work to foreign countries. The United States should eliminate agricultural subsidies. Local and state governments should eliminate subsidies to professional sports franchises.
A ceiling on rents reduces the quantity and quality of housing available. Fiscal policy has a significant stimulative impact on a less than fully employed economy. The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged.
The United States should implement universal health care for its citizens. Almost all economists agree that rent control a.
Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because a. Policies such as rent control and trade barriers persist a. Almost all economists agree that tariffs and import quotas a. Almost all economists agree that local and state governments should a.
John Maynard Keynes referred to economics as an easy subject, a. How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?
Most people who study economics are not very bright. Good economists must possess a rare combination of gifts. Economics is quite boring; hence, people tend to lose interest in it before mastering it. Good thinkers become frustrated with economics because it does not make use of the scientific method. According to economist John Maynard Keynes, a great economist must also be a n a. John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?
An economist must also be a mathematician, historian, statesman, and philosopher in some degree. An economist must understand symbols and speak in words.
An economist must be purposeful and disinterested in a simultaneous mood. An economist must understand environmental science, regulation, and political science. Which of the following is not something that John Maynard Keynes used to describe an economist? He must be a mathematician, historian, statesman, and philosopher in some degree.
He must understand symbols and speak in words. He must only contemplate in abstract and general terms. He must study the present in light of the past for purposes of the future.
Irregular fluctuations in economic activity are known as the a. When a government program is justified not on its merits but on the number of jobs it will create, a. Gregory Mankiw , regarded as one of the founders of New Keynesian DSGE modeling, has argued that New classical and New Keynesian research has had little impact on practical macroeconomists who are charged with [ They take it for granted that the whole economy can be thought about as if it were a single, consistent person or dynasty carrying out a rationally designed, long-term plan, occasionally disturbed by unexpected shocks, but adapting to them in a rational, consistent way The protagonists of this idea make a claim to respectability by asserting that it is founded on what we know about microeconomic behavior, but I think that this claim is generally phony.
The advocates no doubt believe what they say, but they seem to have stopped sniffing or to have lost their sense of smell altogether. The combination of assumptions, when coupled with the trivialisation of risk and uncertainty Critique of DSGE-style macromodelling is at the core of Austrian theory, where, as opposed to RBC and New Keynesian models where capital is homogeneous [note 10] capital is heterogeneous and multi-specific and, therefore, production functions for the multi-specific capital are simply discovered over time.
Lawrence H. White concludes  that present-day mainstream macroeconomics is dominated by Walrasian DSGE models, with restrictions added to generate Keynesian properties: Mises consistently attributed the boom-initiating shock to unexpectedly expansive policy by a central bank trying to lower the market interest rate.
Once we understand how trade would work between these two countries, we can extend our analysis to a greater number of countries and goods. One important role of a scientist is to understand which assumptions one should make. Economists often use assumptions that are somewhat unrealistic but will have small effects on the actual outcome of the answer.
Point out how unrealistic it is. For example, it does not show where all of the stop signs, gas stations, or restaurants are located. It assumes that the earth is flat and two-dimensional. But, despite these simplifications, a map usually helps travelers get from one place to another. Thus, it is a good model. Most economic models are composed of diagrams and equations. The goal of a model is to simplify reality to increase our understanding. Assumptions help to simplify reality.
Our First Model: The Circular Flow Diagram Figure 1 1. Definition of circular-flow diagram: This diagram is a very simple model of the economy. Note that it ignores the roles of government and international trade. There are two decision makers in the model: There are two markets: Firms are sellers in the market for goods and services and buyers in the market for factors of production.
Households are buyers in the market for goods and services and sellers in the market for factors of production.
The inner loop represents the flows of inputs and outputs between households and firms. The outer loop represents the flows of dollars between households and firms. Our Second Model: The Production Possibilities Frontier 1. Definition of production possibilities frontier: Spend more time with this model than you think is necessary. Be aware that students need to feel confident with this first graphical and mathematical model.
Be deliberate with every point. If you lose them with this model, they may be gone for the rest of the course. If all resources are devoted to producing cars, the economy would produce 1, cars and zero computers.
If all resources are devoted to producing computers, the economy would produce 3, computers and zero cars. More likely, the resources will be divided between the two industries, producing some cars and some computers. The feasible combinations of output are shown on the production possibilities frontier. This will help students to realize that a new production possibilities frontier occurs for each period.
The axes show the levels of output per period. A small country produces two goods: Points on a production possibilities frontier can be shown in a table or a graph: A B C D E mp3 Players 0 Music Downloads 70, 60, 45, 25, 0 The production possibilities frontier should be drawn from the numbers above.
Because resources are scarce, not every combination of computers and cars is possible. Production is efficient at points on the curve such as A and B. This implies that the economy is getting all it can from the scarce resources it has available.
There is no way to produce more of one good without producing less of another. Production at a point inside the curve such as D is inefficient. This means that the economy is producing less than it can from the resources it has available. If the source of the inefficiency is eliminated, the economy can increase its production of both goods. The production possibilities frontier reveals Principle 1: People face trade-offs.
Suppose the economy is currently producing cars and 2, computers. To increase the production of cars to , the production of computers must fall to 2, Principle 2 is also shown on the production possibilities frontier: The cost of something is what you give up to get it opportunity cost. The opportunity cost of increasing the production of cars from to is computers.
Thus, the opportunity cost of each car is two computers. The opportunity cost of a car depends on the number of cars and computers currently produced by the economy. The opportunity cost of a car is high when the economy is producing many cars and few computers. The opportunity cost of a car is low when the economy is producing few cars and many computers.
Economists generally believe that production possibilities frontiers often have this bowed-out shape because some resources are better suited to the production of cars than computers and vice versa.
Be aware that students often have trouble understanding why opportunity costs rise as the production of a good increases. You may want to use several specific examples of resources that are more suited to producing cars than computers e.
The production possibilities frontier can shift if resource availability or technology changes. Economic growth can be illustrated by an outward shift of the production possibilities frontier. This reinforces the idea of opportunity cost, and allows them to see how opportunity cost can be measured by the slope. Also, it will introduce students to the use of straight-line production possibilities frontiers which appear in Chapter 3.
However, be careful if you choose to do this as students often find the difference between straight-line and concave production possibilities frontiers challenging. He spends his entire allowance on two goods: Students should be asked to calculate the opportunity cost of one movie and the opportunity cost of one ice cream cone. It should be noted that the slope is equal to the opportunity cost and is constant because the opportunity cost is constant.
Microeconomics and Macroeconomics 1. Economics is studied on various levels. Definition of microeconomics: Definition of macroeconomics: Microeconomics and macroeconomics are closely intertwined because changes in the overall economy arise from the decisions of individual households and firms. Because microeconomics and macroeconomics address different questions, each field has its own set of models which are often taught in separate courses.
The Economist as Policy Adviser A. Example of a discussion of minimum-wage laws: Definition of positive statements: Definition of normative statements: Positive statements can be evaluated by examining data, while normative statements involve personal viewpoints.
Positive views about how the world works affect normative views about which policies are desirable. Use several examples to illustrate the differences between positive and normative statements and stimulate classroom discussion. Possible examples include the minimum wage, budget deficits, tobacco taxes, legalization of marijuana, and seat- belt laws.
Have students bring in newspaper articles and in groups, identify each statement in an editorial paragraph as being a positive or normative statement. Discuss the differences among news stories, editorials, and blogs and the analogy to economists as scientists and as policy advisers.
Much of economics is positive; it tries to explain how the economy works. But those who use economics often have goals that are normative. They want to understand how to improve the economy.
Economists in Washington 1. Economists are aware that trade-offs are involved in most policy decisions. The president receives advice from the Council of Economic Advisers created in Point B is feasible but inefficient because it is inside the production possibilities frontier.
Here is an example. Students should be asked to calculate the opportunity cost of one movie and the opportunity cost of one ice cream cone. The relationship between the inflation rate and changes in the quantity of money is related to macroeconomics. Why Economists Disagree A.
Economists generally believe that production possibilities frontiers often have this bowed-out shape because some resources are better suited to the production of cars than computers and vice versa.
Economists Follow the Scientific Method. Curves in the Coordinate System 1.