The Feature of Social Institutions That Means Mechanisms Are in Place

question 26

Multiple Choice

The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called

• A) due process.
• B) accountability.
• C) the courts of appeal.
• D) the judicial system.

Grasp the basic ingredients and outcomes of economic decisions, including choice and competitive behavior.

Understand the mechanisms of rationing in an economy and the role of price as a rationing criterion.

Identify goods that are not considered scarce and understand exceptions to the scarcity principle.

Understand the impact of international trade on domestic market prices and quantities.

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Definitions:

Economic Profits

The financial gains that are realized when total revenues exceed total costs, including both explicit and implicit costs.

Accounting Profits

The net earnings of a company as calculated by subtracting all explicit costs from total revenues, according to standard accounting practices.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent or salaries.

ATC

Average total cost is found by dividing the overall production cost by the number of units produced.