Which of the Following Best Defines Economics

question 206

Multiple Choice

Which of the following best defines economics?

• A) Economics teaches how to limit our wants.
• B) Economics studies how to choose the best alternative when coping with scarcity.
• C) Economics helps you earn as much money as possible.
• D) Economics analyzes all aspects of human behavior in general.
• E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, resulting in a stable market condition.

Import Competition

The competition that domestic firms encounter from the products and services of foreign producers.

Trade Barriers

Regulations or policies implemented by countries to control the import and export of goods and services.

Import Quotas

Limits set by a government on the quantity or value of certain goods that can be imported into a country.