Multiple Choice
In the context of measuring economic well-being, what does the 'real average hourly wage' in 2009 represent?
67
views
0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Which of the following statements about the discipline of economics is NOT true?
A
Economics studies how individuals and societies allocate scarce resources.
B
Economics involves examining choices made under conditions of scarcity.
C
Economics only focuses on the production of goods and ignores services.
D
Economics analyzes both microeconomic and macroeconomic phenomena.
Verified step by step guidance1
Step 1: Understand the core definition of economics. Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants. This includes both goods and services.
Step 2: Recognize that economics involves examining choices made under conditions of scarcity, meaning resources are limited and decisions must be made about their best use.
Step 3: Note that economics does not only focus on the production of goods; it also includes the production and consumption of services. Therefore, any statement claiming economics ignores services is incorrect.
Step 4: Understand that economics is divided into two main branches: microeconomics, which studies individual and firm behavior, and macroeconomics, which looks at the economy as a whole.
Step 5: Conclude that the statement 'Economics only focuses on the production of goods and ignores services' is NOT true because economics studies both goods and services.
Related Videos
Related Practice
