economics test- please help me.?

K

kfc188

New member
1) what are the two basic assumptions we make in economics?

2) in a capital society:
A) resources are for the most part privately owned
B) resources are for the most part owned by the state
c) prices play a key role in determning how resources will be allocated
d) the government plays teh key role in determining how resouces will be allocated
e) both a and c

3) all points on the production possibilities curve represent a combination of goods that:
a- are equally preferred.
b- can only by produced if there is no unemployment
c- both a and b
d- neither a nore b
 
1 is "The first is ‘scarcity’ – This assumption tells us that resources are limited yet wants are unlimited therefore we have to make choices. Which wants are we to satisfy with our limited resources?

The second assumption is that of living standards, which refers to the amount of goods and services available per person. Living standards are limited by a country's ability to produce. Potential national output depends on the country's resources, technology and productivity. "

2 is E
3 is A
 
Back
Top