Managerial Economics (MIDTERMS) 1.1

is the study of how society manages its scarce resources

is the condition where once and needs of people are not satisfied because of limited resources

• Shortage

• Scarcity

is a temporary condition where demand on a certain commodity or service cannot be met by the current supply

• Shortage

• Scarcity

is a perpetual condition that economists always need to solve because our wants, needs, and satisfaction are unlimited

• Shortage

• Scarcity

Economics is a science

it means at any maximum output with the least possible input

• effectiveness

• efficiency

it can be attained by getting the desired outcome

• effectiveness

• efficiency

In economics, it is an individual's pleasure, happiness, or satisfaction

• Utility

• Marginal

The methodologies of economics are microeconomics and macroeconomics

• True

• False

Answer explanation

It is positive and normative economics

it represents points at which an economy is most efficiently producing its goods and services

• Production possibilities frontier

• Possible production frontier