Economics > Study Notes > ECONOMICS DEALS PRIMARILY WITH THE CONCEPT OF FOLLOWING (All)

ECONOMICS DEALS PRIMARILY WITH THE CONCEPT OF FOLLOWING

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a. Scarcity. b. Poverty. C. Change. d. Power. 2. Scarcity exists when a. There is less than an infinite amount of a resource or good. b. Society can meet the wants of every individual. c. There is ... less of a good or resource available than people wish to have d. The government fails to produce goods. 3. Both households and societies face many decisions because a. Populations may increase or decrease. b. Resources are scarce. c. Wages for households and therefore society fluctuates with business cycles. d. People, by nature, tend to disagree. 4. In economics, the cost of something is a. The dollar amount of obtaining it. b. Always measured in units of time given up to get it. c. Usually higher than people think it will be. d. What you give up to get it. 5. Economists understand that people respond to a. Laws b. Incentives C. Threats more than rewards. d. Positives, but not negatives. 6. People make decisions at the margin by a. Following tradition. b. Experience. c. Calculating dollar costs. d. Comparing costs and benefits. 7. A rational decision maker takes an action only if the a. Marginal benefit is less than the marginal cost. b. Marginal benefit is greater than the marginal cost. C Average [Show More]

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