In Economics, Choices Must Be Made Because We Live in a World

question 162

Multiple Choice

In economics, choices must be made because we live in a world of

• A)unemployment.
• B)scarcity.
• C)greed.
• D)unlimited resources.

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Definitions:

Equilibrium Level

The state in a market where supply equals demand, resulting in stable prices and quantities where no economic forces are unbalanced.

Efficiency Wages

Wages set above the equilibrium level by employers to increase worker productivity, motivation, and loyalty.

Worker Turnover

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and stability.

Production Costs

The total expenses incurred in the manufacture of a product or the delivery of a service, including labor, materials, and overhead costs.