The Economizing Problem for Individuals Is a Consequence of the Fact

question 87

Multiple Choice

The economizing problem for individuals is a consequence of the fact that

• A) economic means or incomes are greater than economic wants.
• B) economic wants are greater than economic means or incomes.
• C) positive economics is more important than normative economics.
• D) normative economics is more important than positive economics.

---

Definitions:

Technology

Refers to the application of scientific knowledge for practical purposes, especially in industry.

Short-run Average Cost

The total cost divided by the quantity of output produced, in the short term when at least one input is fixed.

Long-run Average Cost

The per-unit cost of production in the long term, where all inputs can be varied and economies of scale can be achieved.

Substitution

Substitution refers to the economic principle where users replace one good or service with another in response to changes in price, technology, or consumer preferences.