The discussion of abstraction in section 1.3.1 noted that one does not need to understand the makeup of the components as long as "everything about the detail is just fine." the case was made that when everything is not fine, one must be able to deconstruct the components, or be at the mercy of the abstractions. in the taxi example, suppose you did not understand the component, that is, you had no clue how to get to the airport. using the notion of abstraction, you simply tell the driver, "take me to the airport." explain when this is a productivity enhancer, and when it could result in very negative consequences.

Suppose the price of frozen yogurt, a substitute for ice cream, increases. what happens to equilibrium price and quantity of ice cream? a. the price and quantity of ice cream both increase b. the price and quantity of ice cream both decrease c. the price of ice cream increases and the quantity decreases d. the price of ice cream decreases and the quantity increases

As manager of kids skids, meghan wants to develop her relationship management skills. in order to do this, she learns how to

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations