Explain Why Each of the Following Is Considered an Economic

question 203

Essay

Explain why each of the following is considered an economic issue:
a.whether to spend Saturday evening at a hockey game
b.obtaining tickets to a U2 concert
c.your university considers your application for one of 25 available scholarships

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Definitions:

Random Variation

The unpredictability in the behavior or outcome of a process, due to the influence of random factors or noise.

Cyclical Variation

Fluctuations in statistical or economic data that occur periodically over cycles, such as those caused by the business cycle.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.