Economics ECON S - 1920 Chapter : Economics_Summary

Choose the correct answer for the below :

Economics is best defined as the study of -

A. prices and quantities.

B. inflation and interest rates.

C. how people make choices under the conditions of scarcity and the results of those choices.

D. wages and incomes.

Economists believe the cost-benefit principle is:

1. a simple but useful model of how people should make choices.

2. is a comprehensive description of all the factors that influence people's choices.

3. an interesting intellectual exercise with little applicability to the real world.

4. of little use to those who wish to learn how to make better decisions.