Allocative efficiency Study guides, Revision notes & Summaries

PDF Homework Questions & Answers - Macro Exam One 2023/2024 When economists develop models designed to explain the choices people make, they generally assume that - ANSWER-People are rational One of the basic facts of life is that people must make choices as they try to attain their goals. This unavoidable fact comes from a reality an economist calls - ANSWER-Scarcity The Three economic questions that every society must answer are - ANSWER-What goods will be produced How will they b...

WGU Microeconomics C718 Questions and Answers Already Passed Economics the study of how humans make decisions in the face of scarcity 3 basic economic questions What to produce? How to produce? For whom to produce? opportunity cost measures cost by what is given up in exchange; opportunity cost measures the value of the forgone alternative How do economists assume individuals make choices? whatever will serve their own self-interest margin the current level of an activity choice at the marg...

Insurance coverage likely has little impact on people's use of needed health care services.Insurance coverage likely has little impact on people's use of needed health care services. - False. Likely has a major impact, if something is not covered and is expensive to pay with from out-of-pocket then that individual likely won't be able to get access to that care. Reducing inequalities in health within the population should focus primarily on the distribution of health care. - True. Should...

Positive Statement correct answers A statement that can be tested to see if it's correct or not Normative Statement correct answers A statement that has a value judgement and can't be refuted by looking at evidence Need correct answers Something necessary for human survival Want correct answers Something that is desirable Economic welfare correct answers The economic wellbeing of an individual or group of people (Human happiness) Capital good correct answers A good used in the...

WGU C718 VOCABULARY 2024 QUESTIONS WITH COMPLETE ANSWERS ALREADY PASSED AND GRADED A+ absolute advantage - CORRECT ANSWER when a country (or person) can produce more of a good than another country (In this picture England has absolute advantage in both goods) accounting profit - CORRECT ANSWER profit computed using only explicit costs (Acct Profit = Total Revenue - Explicit Costs) marginal external costs - CORRECT ANSWER additional costs incurred by third parties outside the produ...

Allocative Efficiency - Answer Occurs when the available economic resources are used to produce the combination of goods and services that best matches people's tastes and preferences Positive Statements - Answer A statement of fact that can be tested to see if it is incorrect or correct Normative Statements - Answer A statement that includes a value judgement and cannot be disproved just by looking at evidence Need - Answer Something that is essential for human survival e.g. f...

Scarcity correct answers Although your wants are unlimited, the resources available to fulfill those wants are limited Economics correct answers Study of the choices consumers, business mangers and government officials make to attain their goals, given their scarce resources Economics Model correct answers A simplified description of reality, used to make predictions that can be tested with data 3 Main Ideas correct answers 1. People are rational 2. People respond to economic incentive...

Principles of Microeconomics Exam Questions And Answers (Verified And Updated) Scarcity - answera situation in which unlimited wants exceed the limited resources available to fulfill those wants shortage - answera situation in which the quantity demanded is greater than the quantity supplied microeconomics - answerthe study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices macroeconomics - answerthe study o...

Economics - Answer-social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity, incentives, and reconcile those choices Macroeconomics - Answer-Study of the performance of the national and global economies E.x. Why is the unemployment rate in the U.S. so high? Microeconomics - Answer-Study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments E.x. Why ...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) - ANSWERSThe total amount of goods...