Which of the Following Concepts Do Economists Focus Their Study

question 54

Multiple Choice

Which of the following concepts do economists focus their study on when explaining how humans behave?

• A) fairness
• B) money
• C) emotions
• D) incentives
• E) justice

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Definitions:

Marginal Cost Curves

A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Law of Diminishing Returns

Law of Diminishing Returns states that in a production process, adding an additional factor of production, while holding all others constant, will at some point yield lower per-unit returns.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded, and should not influence current or future decisions.

Variable Costs

Costs that change in proportion to the level of production or service activity.