Which Tools Allow Economists to Determine If the Allocation of Resources

question 88

Multiple Choice

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?

• A)profits and costs to firms
• B)consumer and producer surplus
• C)the equilibrium price and quantity
• D)incomes of and prices paid by buyers

Understand the role of personal and positional power in shaping behaviors and outcomes.

Understand and define various capital budgeting techniques.

Describe the importance and application of the cost of capital in business decisions.

Identify and explain the quantitative techniques used in capital budgeting decisions.

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Definitions:

Attributing

Attributing involves assigning a cause or reason to an event or behavior, often relating to explaining why something happened.

Defense Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety or social sanctions and to manage emotional conflicts.

Reaction Formation

A defense mechanism where an individual behaves in a way directly opposed to their actual feelings or desires, often to hide those feelings.

Anxiety-Arousing

Pertaining to stimuli or situations that provoke a state of increased nervousness, fear, or unease.