Economics

question 115

Multiple Choice

Economics:

• A)studies human behavior when scarcity exists and choices must be made.
• B)provides the only reasonable explanation of how people make decisions.
• C)can accurately explain all human behavior since it is based on the assumption of rationality.
• D)is better at showing the way things ought to be than the other social sciences.
• E)is the only social science that can explain the existence and behavior of public institutions.

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Definitions:

Patent

A legal right granted to an inventor, giving them exclusive rights to manufacture, use, or sell their invention for a certain period of time.

Marginal Cost

The change in total cost that arises when the quantity produced increases by one unit.

Industry Output

The total quantity of goods or services produced by all firms within a particular industry.

Zero Marginal Cost

The scenario in which producing one more unit of a good or service does not increase the total cost of production, typically seen in digital goods or highly automated processes.