basic economic question

economics is the study of____

• choice

• opportunity cost

• utility

• resources

Why might consumers not always behave rationally in their economic decisions?

• They always make decisions that maximize their utility

• They may be influenced by others.

• They have complete information about the future and all market conditions.

• They calculate the marginal cost and benefit of every decision with perfect accuracy.

The Basic Economic Problem arises because resources are ____________, while human wants are ____________.

• limited/scarce

• scarce/finite

• limited/unlimited

• infinite/finite

The basic economic problem leads to make decisions about the most efficient way to allocate resources and satisfy people’s ________ and ________.

• wants/choices

• choices/needs

• opportunities/utilities

• needs/wants

Consumers will maximise their____________.

• costs

• profits

• bebefits

• savings

Producers maximise their _______

• losses
• costs
• expenses
• profits

Producers sell products at the _______ price that the market can stand while buying at the________ price possible.

• fixed; variable
• average; median
• lowest; highest
• highest; lowest

Why might producers not always make rational decisions in the market place?

• They never care about improvements in human environmental well-being.

• They may be influenced by the behaviour of other people in the organization.

• They don’t have alternative business objectives.

•  They possess unlimited resources to respond to changes in demand and supply.

What term describe that how useful something is, or how happy it makes you feel?

• opportunity cost

• utility

• satisfaction

• happiness

Toothpaste and toothbrush are examples of which goods?

• Complementary goods

• inferior goods

• substitute goods

• capital goods