Basic Principles Of Economics

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Anne is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: 3.1. "Anne has decided to adjust her training program so that she has the best chance of cutting a few minutes off her total race time." Which basic principle of individual choice does this sentence best illustrate? A. Resources are scarce. B. All costs are opportunity costs C. Many decisions are taken at the margin. D. People usually exploit opportunities to make themselves better off.

Best Answer

D. Utility maximizing stategies are always selected.

Best Answer

The PPF shows all efficient combinations of output for a country when the factors of production are used to their full potential. Say for example the country can produce two goods such as rice and corn -- the PPF is the curve resulting from the various combinations the country can produce these goods (etc. 15 sacks rice and no corn; 10 sacks rice and 5 corn; 5 sacks rice and 10 corn; and 0 rice and 15 sacks of corn) Here's a good discussion of PPF http://www.netmba.com/econ/micro/production/ possibility/

I'm an undergraduate student who is writing a thesis on topics related to political economy and entrepreneurship in India, but I feel that my classical economics background is only very basic. I've taken an introductory course that covered the introduction to both microeconomics and macroeconomics (used Mankiw's Principles of Economics), but nothing further. I've also taken a few courses on political economy, where we read many noted authors (including Oatley's International Political Economy) but didn't really cover much theory or data analysis. My question is - can anybody recommend a book or other resource that will enable me to learn the skills I need? I've read "The Worldly Philosophers" and many other well known political economy texts. My thesis will involve analysis of macroeconomic data as well, so anything that would help there would also be appreciated. Also, if anybody knows resources specifically about the political economy of INDIA, I'd be very grateful.

Best Answer

You should look for studies on India by the World Bank, the IMF, and the Asian Development Bank. All have websites where their publications and studies can often be downloaded. One good study on the business environment faced by entrepreneurs is the World Bank study "Doing Business, 2007". Another source is the website developmentgateway.org that specializes in exchanging information about economic development over the internet.

Best Answer

Thats not a real question. Economics is the study of production and comsumption of goods and services, aka the economy. It has a broad range of topics that can't be summized in a set of 'basic principles'. But if you want a dubious answer, supply and demand, scarcity, and something about the price of tea in china.

The accountant then asks, "Why don't you figure out whether you are making more money selling cabbage or selling corn and then plant your entire field in the crop that offers the highest profit?" Alice responds by saying that some people like corn, and others like cabbage, so she finds that it makes sense to offer some mixture of the two. But each year, she makes small adjustments in the amount of land that she gives to the two crops based on their popularity at the farmers' market. In this adjustment of land use, which of the four basic principles of individual choice does Alice understand that her accountant fails to understand? is it "People usually exploit opportunities to make themselves better off." or, "Many decisions are taken at the margin."

Best Answer

It's obviously the second, because the first is meaningless and economists love to talk about margin this, margin that.