Which of the Following Is Correct About the Economic Decisions

question 114

Multiple Choice

Which of the following is correct about the economic decisions consumers,firms,and the government have to make?

• A)Governments may face the problem of shortages but not scarcity in making economic decisions.
• B)Only individuals face scarcity; firms and the government do not.
• C)Firms and the government face scarcity,individuals only face shortages.
• D)Each faces the problem of scarcity which necessitates trade-offs in making economic decisions.

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Definitions:

Y

Often used to represent a dependent variable in mathematical equations and models.

Random Variables

Variables whose possible values are numerical outcomes of a random phenomenon.

E(X)

The expected value of the random variable X, representing the mean or average value that X takes on.

E(Y)

The expected value of the random variable Y, representing the mean or average outcome of a set of possible values weighted by their probabilities.