Explain the study of economics
What will be an ideal response?
Economics is the study of how people allocate their limited resources in an attempt to satisfy their unlimited wants. Because of this contrast between limited resources and unlimited wants, economics is the study of how people make choices.
You might also like to view...
In an oligopoly, firms can increase their market power by
A) undertaking heavy advertising expenditure. B) colluding to set prices. C) selling to buyers who have market power. D) pursuing dominant strategies.
In order for a country's real GDP to increase without inflation or deflation over long periods time,
A. either its aggregate demand or its aggregate supply must increase. B. its aggregate supply must increase. C. its aggregate demand must increase. D. both its aggregate demand and its aggregate supply must increase.
Refer to Figure 6.2. The Nash equilibrium for the market is
A. Fly Air-full service, Hi Air-full service B. Fly Air-no frills, Hi Air-full service C. Fly Air-full service, Hi Air-no frills D. Fly Air-no frills, Hi Air-no frills
A pure monopoly is not allocatively efficient because at the profit-maximizing level of output ________.
A. P > MR B. P > AVC C. P > ATC D. P > MC