Because Resources Are Scarce Relative to Wants, the Study of Economics

question 232

Multiple Choice

Because resources are scarce relative to wants, the study of economics concerns

• A) how money is important to people.
• B) how individuals, businesses, and governments make choices.
• C) how money is used to buy what people want.
• D) None of the above are correct.

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Definitions:

Weak Axiom

A principle or condition in economics that provides a minimal criterion for consumer choice consistency under certain assumptions.

Profit Maximization

A process or strategy in which a firm's primary objective is to achieve the highest possible profits by adjusting its production and pricing techniques.

Input Increases

A situation where there is an enhancement or augmentation in the resources used for production.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.