Concept explainers
Definition of economics.
Answer to Problem 1CQQ
Option ‘a’ is correct.
Explanation of Solution
Option (a):
The economics can be defined as the study of how society manages its scarce resources. The economy consists of scarce resources and unlimited wants. So the economy is study about how the society manages theses scarce resources to meet this limitless wants. Thus, option ‘a’ is correct.
Option (b):
The business and profitability are two small parts in the economy but economy is not only the study about the how to run the business most profitability. Thus, the option ‘b’ is incorrect.
Option (c):
The economics is not the study of how to predict the inflation,
Option (d):
The economy consists of how the scars recourses are allocated or managed. It is not the study of how the government can stop the harm from unchecked self- interest. Thus, the option ‘d’ is incorrect.
Concept introduction:
Economics: Economics refers to the study of how the individual, society and organization decide to allocate its limited available resource to produce finished goods and services in order to satisfy its unlimited demands.
Want to see more full solutions like this?
Chapter 1 Solutions
Principles of Microeconomics
- What is important of studying economics? Give two good examples how the knowledge can help you in your daily routines.arrow_forwardWhat is the importance of studying economics? Give an example how it can help you.arrow_forwardMuch of modern economic thought believes people to be, generally speaking, rational and self-interested. What do these two concepts mean and why are they core to our modern understandings? Please write a paragraph and answer about it.arrow_forward
- Economics is defined as the study of: Select one: Oa. central planning O b. government regulation c. how society manages its scarce resources Od.businessarrow_forwardQuestion related to economics.arrow_forwardEconomics is the study of all of the following except:a. how the prices of goods and services are determinedb. how people make decisions, given scarce resourcesc. how to eliminate scarcity with new ideas and inventionsd. how buyers and sellers interact in a marketPlease don't use any ai tool.arrow_forward
- Which of the following are systematic errors? a. A colorblind person who repeatedly runs red lights. b. An accountant whose occasional math errors are sometimes on the high side and sometimes on the low side. c. The tendency many people have to see faces in clouds. d. Miranda paying good money for a nice-looking apple that turns out to be rotten inside. e. Elvis always wanting to save more but then spending his whole paycheck, month after month.arrow_forwardScarcity means what? time and resources spent researching a cure for breast cancer are time and resources that could have been spent researching cures for lymphoma. 25 year olds might be more willing to start a family than 35 year olds. government funding of federal programs equals the amount paid in taxes. all consumers are assumed to have limited financial resources. money flows in a circle.arrow_forwardPositive economics is: a. An investigation or statement that attempts to examine or understand how the world actually operates or how the world is operating. b. An investigation or statement about the norms and culture of other countries. c. An investigation or statement that attempts to describe how the world should be or ought to be. d. An investigation or statement about the positive benefits of a given country.arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co