Reason how economics become the science of choices.
Explanation of Solution
Economics is the study of scarcity and how individuals and the society deal with the fact that there are only limited resources available to unlimited human needs and wants. It is a broad subject that deals with how people make choices or the behavior of people since the problem of scarcity exists.
Suppose purchasing of goods at a given price depends on the choice of each individual, economics focuses on the variables that influence their decision making, which include price of the good, price and availability of alternatives, and so on. If there is no choice, then economics becomes irrelevant.
In labor market, there is scarcity related to the working time and leisure time, so that workers decide how much time they have to work or spend for leisure. It depends on the
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Chapter 1 Solutions
Contemporary Labor Economics
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- The statistical institution in your country project a 22.5% increase in the number of workers in the healthcare industry from 2008 to 2018 classify as microeconomics or macroeconomics and provide a justification for your answerarrow_forwardClassify the following as microeconomics or macroeconomics andprovide justification A firm's decision about how many workers to hirearrow_forwardWhy short-run adjustment of output to demand may not take place as envisaged in marginalist theory?arrow_forward
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- Identify each of the following topics as being part of microeconomics or macroeconomicsarrow_forwardClassify the following topics as relating to microeconomics or macroeconomics. The family’s decision about how much income to spend on food. The effect of government regulations on auto emissions. The impact of higher public savings on economic growth. A monopolist’s decision about how many units to sell. The relationship between the inflation rate and the unemployment rate.arrow_forwardDefine the principles essential for understanding the economizing problem, demand and supply, and market equilibrium.arrow_forward
