The Study of How Nations Deal with the Problem of Scarcity

question 25

Multiple Choice

The study of how nations deal with the problem of scarcity is the domain of

• A)economics
• B)political science
• C)sociology
• D)political economy
• E)anthropology

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Definitions:

Public Good

A product that one individual can consume without reducing its availability to another individual, and from which no one is excluded, such as national defense or public parks.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its use by one individual does not reduce its availability to others and people cannot be prevented from using it.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a good or service.

Market Allocating Resources

The process through which a free market economy determines the distribution of resources based on supply and demand dynamics.