Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Q. d - For Critical Thinking (page 8)

In what way do small talk and gossip represent the use of simplifying assumptions?

Short Answer

Expert verified

Small talk and gossips make the work smaller and are used to simplify assumptions.

Step by step solution

01

Step 1. Definition of Economics.

Economics refers to the satisfaction of wants by use of various alternative uses.

02

Step 2. Reason.

Small talk and gossip represent the use of simplifying assumptions because they are used as simple ways to reach a conclusion similar to assumptions.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Centralized command and control prevail throughout a certain nation's economy. What three key economic questions have been addressed in this nation, and what has been the common element of the nation's answers to those questions?

Consider the following statements, based on a positive economic analysis that assumes that all other things remain constant. For each, list one other thing that might change and thus offset the outcome stated.

(a) Increased demand for laptop computers will drive up their price.

(b) Falling gasoline prices will result in additional vacation travel.

(c) A reduction of income tax rates will result in more people working.

Why does the assumption of bounded rationality suggest that people might use rules of thumb to guide their decision-making instead of considering every possible choice available to them?

Under the rationality assumption, could a woman potentially take into account her family's welfare as well as her own when considering having another child? Explain your reasoning.

Suppose that the U.S. federal government has borrowed \(500 billion to expand its total spending on goods and services across the entire economy in an effort to boost by \)500 billion the aggregate production by the nation's firms. Would we apply microeconomic or macroeconomic analysis to analyze this policy action?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free