In the capitalist economic system, the individuals through the forces of demand and supply interact to determine the allocation of resources as well as prices without external interference. Why then is the government sometimes justified to intervene in the economy to allocate resources?

Q: According to the invisible hand principle, competitive markets generally O bring the self-interest…

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: Economics is a social science which deals with human behavior as a relationship between ________. a.…

A: It is said that Economics is a social science which deals with human behavior as a relationship.

Q: What are the circular flows in the capitalist economy? Please draw it and explain at least in four…

A: Capitalist economy: It is alluded to as the monetary framework where the variables of creation, for…

Q: Which of the following are three key components of the economic problem? a. scarcity; choice; giving…

A: The economics as a study is based upon the basic idea of scarcity, where the resources which are…

Q: Which of the following is NOT true of a market economy? Decisions are regulated by a central agency.…

A: Option D is wrong  It relies millions of individual economic dicision to determine economic output…

Q: Economic models A) are people who act out the behavior of firms and households so that economists…

A: Because of economic models,economists are able to understand economic terms and relate it to reality…

Q: You are a University student who must live off-campus in the second year. There are two types of…

A: Opportunity Cost is defined as the cost of the next best alternative or the cost that is forgone.…

Q: If capital can only be used to produce shoes, land can only be used to produce beans, and labor is…

A: Given capital and land are immobile and can only produce shoes and beans respectively, labor would…

Q: The interactions of producers and consumers in individual markets are part of the study of…

A: Microeconomics and Macroeconomics are the two important branches of study of economics.

Q: in economics, decisions are necessary because are scarce, while . are practically unlimited. (A)…

A: Economics is the study of producing consuming and distributing goods and services.

Q: According to Polonyi,need for economy arises a)because scarcity of resources needs efficient…

A: According to Polonyi, formal economics is related to the scarcity of goods, and that too when the…

Q: The below table shows production points on Sweet-Tooth Land's production possibilities frontier.…

A: A production possibility curve, or PPC for short, is a graphical representation of the various…

Q: he idea that because of​ scarcity, producing more of one good or service means producing less of…

A: Scarcity refers to one of the basic problems of economics. Scarcity means that resources are limited…

Q: Why is the law of demand and the law of supply a useful economic model

A: The law of both demand and supply shows the interaction between buyers and sellers of the good or…

Q: Which of the following best captures the idea of the fundamental economic problem? Choose 1 answer:…

A: Scarcity is the condition of a limited supply of goods and raw material with unlimited demand.

Q: Which of the following is a question answered with normative economic reasoning? O If the college…

A: Positive economic statements:  A positive economic statement is based on empirical data and facts,…

Q: Scarcity is represented on the production possibilities frontier by   the amount of the good on the…

A: Scarcity is represented on a production possibility frontier graph by the fact that there are…

Q: Which of the following statements is false? A) Anytime you have to decide which action to take you…

A: To obtain a certain good or service, we have to sacrifice something, it can be money or time or…

Q: Below is the microeconomics statement condition (MSEC). Identity the type of economic system.…

A: Economic systems can be classified into four major types: traditional economic system, command…

Q: Social efficiency requires that, if Q 1 units are bought and sold in a market, then the ____ of Q 1…

A: Social efficiency is the concept of most optimal distribution of the goods and services (resources)…

Q: Evidence accumulates that the use of chemical fertilizers, which increases agricultural production…

A: A production possibility frontier represents the locus of all maximum combinations of two goods or…

Q: On the basis of your observations, which factors of production are scarce in your community? Give…

A: 1. Capital is scarce in my community. I have observed that major goods that are produced in my…

Q: PPFs are usually bowed out because:    a) all resources are not equally adaptable in the production…

A: Production possibility frontier refers to a curve that shows the combinations of two goods located…

Q: Why is the equality between the marginal benefit and marginal cost of an action an equilibrium…

A: Marginal benefit and marginal cost are two different concepts.  Marginal benefit is the amount the…

Q: Economics: considers the trade-offs under scarcity assumes people act "rationally" in exchanges…

A: When studying about the economy as a social aspects, economics is the branch of social studies that…

Q: Do you agree that human beings, having the ability to direct their own behavior by rational decision…

A: Answer 1 Assuming you say indeed, you feel that individuals can never be constrained right into it…

Q: Which of the following is true? There could be more than one correct answer. Productive efficiency…

A: When talking about productive efficiency, allocative efficiency and economic efficiency, it can be…

Q: If a new type of seed were developed that made it easier to grow a particular crop, how would the…

A: Production possibility curve is a graphical presentation of all the possible combination of two…

Q: Suppose you spend five hours studying for your final exam. In the first hour, you manage to review…

A: Factors of production are very significant in the establishment of relationship between input and…

Q: production possibilities frontier can shift outward if Select one: a. government increases the…

A: PPF shows the different considerations of two goods that can be produced using the all inputs and…

Q: Shield deodorant and Gucci Perfume are products that satisfy Physiological needs. True False…

A: 1. Shield deodorant and Gucci Perfume are products that satisfy Physiological needs. - FALSE

Q: What determines whether or not a resource is scarce? Why is the concept of scarcity important to the…

A: The scarcity of resources is determined when the demand for resources is more than the availability…

Q: No more than 100 words for the answer: Explain briefly how property law can serve society’s interest…

A: The law that governs the area of law that in turn governs various ownership forms in personal and…

Q: Why is the equality between the marginal benefit and marginal cost of an action an equilibrium…

A: Marginal benefit can be defined as the additional gain after consuming an additional amount of given…

Q: In a market economy, what is the central coordinating mechanism? How does a market economy solve the…

A: Hey, thank you for the questions but according to our policy we answer only one question per…

Q: A well educated society can be considered which of the following, as it pertains to economics?…

A: If a person's knowledge and abilities are developed in such a way that they finally result in a…

Q: The basic premise of rational choice theory is that aggregate social behavior results from the…

A: In a market, rational choice refers to the economic concept that is used to analyze the general…

Q: Parents offer to buy their son a new videogame if the kid gets an A in all his classes. Which…

A: Economics refer to the study of allocation of limited resources in the presence of unlimited wants…