Which of the Following Statements Is Correct

question 114

Multiple Choice

Which of the following statements is correct?

• A) Economics is a natural science.
• B) In large measure, economics is the study of how people make choices.
• C) If poverty was eliminated there would be no reason to study economics.
• D) Economic analysis can be used to explain how societies, but not individuals, make decisions.

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Definitions:

Economic Profits

Profits exceeding the opportunity costs of all resources employed, reflecting a return beyond the normal profit level.

Economic Costs

The total value of all the resources used in the production of goods or services, including both explicit and implicit costs.

Economic Profit

The difference between total monetary revenue and the total costs of inputs (including opportunity costs), representing the financial gain exceeding the economic opportunity lost.

Normal Rate

The standard or usual rate for a task or service, often related to wages or interest.