Question: Tradition Most people tip for service in restaurants, but not for service at clothing stores or gas stations. Explain how this illustrates economic behavior by tradition rather than by market or command.
Economic and Social Goals Compare the figures below and then answer the questions that follow.
a. If the diagram in Figure 1 represents "needs" and "wants," how would you label the two diagrams in the figure? Explain your choice.
b. If the two circles in Figure 2 represent the goals of economic security and economic equity, where would you place a federal policy such as the minimum wage law-in area A, B, or C? Explain your choice.
c. If you were to change "Economic security" to "Economic efficiency" in Figure 2, would this change your placement of the minimum wage policy? How?
