The Four Elements of the Economic Way of Thinking Includes

question 14

Multiple Choice

The four elements of the economic way of thinking includes all of the following except:

• A) economic analysis uses the key assumption that people act irrationally and that they are not motivated by self- interest.
• B) economists use assumptions to make things simpler and focus attention on what really matters.
• C) economic analysis often involves variables and how they affect one another.
• D) economists often consider how a small change in one variable affects another variable.

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Definitions:

Specific Set

A clearly defined and identified collection of elements or members.

General Price

The standard or average cost of goods or services available in the market to all consumers.

Electronic Goods

Products that use electric power for their operation, including consumer electronics like phones, TVs, and computers.

Law Of One Price

The economic theory stating that in an efficient market, identical goods must have only one price.