The statement related to sound economic thinking.

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Chapter 21, Problem 2CQ

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The statement related to sound economic thinking.

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. Which statement best describes why business economics is an important field of study? It examines how government policies impact other nations. It involves how population distribution affect the environment. It involves how limited resources influence personal decisions. It examines how financial traditions shape modern society.

Which of the following statements do you think reflect sound economic thinking? Explain your answer. “I paid $1,800 for this economics course. Therefore, I’m going to attend the lectures even if they are useless and boring.” “Because we own rather than rent, and the house is paid for, housing doesn’t cost us anything.” “I own 100 shares of stock that I can’t afford to sell until the price goes up enough for me to get back at least my original investment.” “Private education is costly to produce, whereas public schooling is free.

Which statement best describes how scarcity is an important part of business economics? Scarcity permits consumers to establish the cost at which producers will manufacture goods. Scarcity forces consumers and producers to consider the opportunity costs of decisions. Scarcity forces producers to reduce supply to meet consumer demand. Scarcity allows consumers and producers to avoid distinguishing between needs and wants.