Economists have a particular perspective on the decisions that are made in our economy. Determine whether the statements relating to the "economic perspective" are true or false.

1. Resources are limited and wants are virtually unlimited. So, economic wants exceed society's productive capacity to satisfy those wants.

2. Economics is concerned with how people, organizations, and society make optimal choices under conditions of scarcity.

3. To obtain more of one good, society sacrifices the opportunity to obtain other, alternative goods. This sacrifice is called the opportunity cost.

4. Economics assumes that people act rationally and in their own self-interest.

5. Economics equates rational self-interest with selfishness.

6. Economics focuses on average analysis, a comparison of average benefits with average costs, as the method for making economic decisions. true true true false

Question

Joey

Business

5 October, 11:23

Economists have a particular perspective on the decisions that are made in our economy. Determine whether the statements relating to the "economic perspective" are true or false.

1. Resources are limited and wants are virtually unlimited. So, economic wants exceed society's productive capacity to satisfy those wants.

2. Economics is concerned with how people, organizations, and society make optimal choices under conditions of scarcity.

3. To obtain more of one good, society sacrifices the opportunity to obtain other, alternative goods. This sacrifice is called the opportunity cost.

4. Economics assumes that people act rationally and in their own self-interest.

5. Economics equates rational self-interest with selfishness.

6. Economics focuses on average analysis, a comparison of average benefits with average costs, as the method for making economic decisions. true true true false

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Answers (1)

Know the Answer?

Yael Thomas · Answer 1

1. False

2. False

3. True

4. True

5. True

6. True

Explanation:

Economics is the study of how individuals make decisions when the resources are scarce. Scarcity means that the want fro goods or services is more than what is available. So, at all levels, society should make choices of how to use its resources

Second statement is a positive one but is incorrect. Third statement is the correct definition for opportunity cost. Fourth and fifth statement means that people choose things that benefit them the most and avoid which is not valuable. So, they act according to their self - interest. People in society look for opportunities to increase their utility.