In Order to Explain How Societies Deal with the Problem

question 50

Multiple Choice

In order to explain how societies deal with the problem of scarcity,economists apply simplified representations known as

• A) Simplifying assumptions
• B) Theories
• C) Normative questions
• D) Models

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Definitions:

Economic Standpoint

A perspective or analysis based on economic principles, often considering factors like scarcity, supply and demand, and cost-benefit analysis.

Inefficient Manner

Performance or operation in a way that does not achieve the best possible outcome or wastes resources.

Marginal Revenue

The supplementary income generated through the sale of one extra unit of a good or service.

Output

The total amount of goods or services produced by a company, industry, or economy in a given period.