When deciding whether or not to undertake an activity econom

When deciding whether or not to undertake an activity, economists compare:

Select one:

a. the total cost of the activity against the total benefit received.

b. the total benefit of the activity against the total cost of production.

c. the additional cost of the activity against the additional benefits received.

d. the average cost of the activity versus the total benefits received.

Inflation is primarily caused by:

Select one:

a. businesses raising their prices in response to increasing energy prices.

b. the government printing too much money.

c. misguided fiscal policy.

d. economic downturns in GDP.

An economy in which entrepreneurs are free to experiment with new ideas and bring innovative products to the market will:

Select one:

a. help economic growth but not affect living standards.

b. lead to improved living standards and increased economic growth.

c. lead to increased living standards but stagnate economic growth.

d. help stagnate living standards but increase economic growth.

Solution

Q 1. Option C.

Decisions inviting an activity are critical, which involves a large sum of money,

So when the Economists decide whether or not to take an activity economists compare the additional cost of activity.

Q2 . Option b.

Inflation is primarily caused by an increase in the money supply

That is when the government decides to print money when there is already sums of money in circulation.

Q 3. Option b.

When Entrepreneurs are free to experiment with new ideas and bring new products to the market, standards of living in the Economy improves and leads to Economic growth.