Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is a step that economists take in order to examine a real-world issue?
A)Determine the results that will occur if the market being considered is a controlled market
B)Look at the real-world results to see the similarities they hold with the results of a free market
C)Suggest remedies and policies to alter the results of a free-market
D)Suggest remedies or policies to alter the real-world result
E)Assume that the market transactions, in a real-world, is completely controlled by the government

Question

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is a step that economist​s take in order to examine a real-world issue?
A)​Determine the results that will occur if the market being considered is a controlled market
B)​Look at the real-world results to see the similarities they hold with the results of a free market
C)​Suggest remedies and policies to alter the results of a free-market
D)Suggest remedies or policies to alter the real-world result
E)​Assume that the market transactions, in a real-world, is completely controlled by the government

Quizplus · Accepted Answer

Economists typically analyze real-world issues and suggest remedies or policies to alter the actual results. This process involves looking at the current situation, identifying any issues or inefficiencies, and proposing solutions that align with economic theory to improve the outcomes. Options A, B, and E are not relevant to the analysis of real-world issues because they involve theoretical scenarios and assumptions that do not always apply to real-world situations. Option C is sometimes considered by policymakers, but it is not part of the economist's role to suggest policies that could interfere with the free-market mechanisms.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth