1 The economic way of thinking entails d the analysis of cos

1. The economic way of thinking entails:

d. the analysis of costs but not benefits.

* Answers should be at least 3-5 sentences long and include no grammar mistakes. Your work is your own and ideas and positions are clearly explained.

2. What does the term opportunity cost mean and give an example and how it relates to your life as a student.

3. Be able to explain ceteris parabis and use it correctly in a sentence, by explaining something you have done to help improve your scores on exams.

4. Relate positive and normative statement with what you learned regarding fact and opinion statements. Give an example of both.

5. Explain why the United States still faces scarcity despite being one of the richest countries in the world.

Solution

Question 1

The economic way of thinking implies that while undertaking a decision, marginal benefit and marginal cost of decision should be analyzed.

In other words, it should be estimated that how much of additional benefit in contrast to additional cost is being imposed by the decision.

If additional benefit exceeds additional cost, decision can be undertaken otherwise not.

So, in a way, the economic way of thinking entails making choices at the margin.

Hence, the correct answer is the option (c).