Which of the following statements best describes the study of economics?
A. Economics studies how people maximize returns in the stock market.
B. Economics studies how the Federal Reserve handles fluctuation in business cycles.
C. Economics studies how governments determine appropriate tax rates.
D. Economics studies how individuals and groups manage scarce resources.
Answer: D
You might also like to view...
Since we live in a world of high concentration ratios,
a. goods are produced at the lowest possible average total cost b. perfect competition does not exist c. most markets operate under conditions of monopoly d. prices are at their lowest possible levels e. it is an economic paradise
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A firm's demand for labor will increase if the:
A. price of the firm's output decreases. B. marginal product of labor decreases. C. wage rate rises. D. price of the firm's output increases.
Examples of monopolistically competitive industries in which firms differentiate their products by offering them at more locations include all of the following except:
A. restaurants. B. video rental stores. C. retail clothing stores. D. wheat farms.