The Study of Economics Exists Because

question 249

Multiple Choice

The study of economics exists because:

• A)government interferes with the efficient allocation of scarce resources.
• B)resources are scarce in relation to human material wants.
• C)the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants.
• D)resources are overly abundant as compared to wants; thus, an allocation problem exists.

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular market or economy.

Government Impact

Refers to the effects of government policies and actions on an economy's performance and the well-being of its citizens.

Marginal Propensity

Marginal propensity refers to the proportion of an additional income that an individual consumes rather than saves.

Additional Income

Income that is received in addition to the primary source of income, such as earnings from side jobs or investments.