Which of the Ten Principles of Economics Does Welfare Economics

question 2

Multiple Choice

Which of the Ten Principles of Economics does welfare economics explain more fully?

• A)The cost of something is what you give up to get it.
• B)Markets are usually a good way to organize economic activity.
• C)Trade can make everyone better off.
• D)A country's standard of living depends on its ability to produce goods and services.

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Definitions:

Capital

Economic resources used in the production of goods and services, such as machinery, buildings, or tools.

Construction Crane

A type of machinery used on construction sites to lift and lower materials and to move them horizontally.

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.

Entrepreneur

An individual who creates new business ventures, taking on financial risks in the hope of profit.