Managerial Economics (MIDTERMS) 1.1

is the study of how society manages its scarce resources

(a)  

is the condition where once and needs of people are not satisfied because of limited resources

• Shortage

• Scarcity

is a temporary condition where demand on a certain commodity or service cannot be met by the current supply

• Shortage

• Scarcity

is a perpetual condition that economists always need to solve because our wants, needs, and satisfaction are unlimited

• Shortage

• Scarcity

Economics is a science

(a)  

it means at any maximum output with the least possible input

• effectiveness

• efficiency

it can be attained by getting the desired outcome

• effectiveness

• efficiency

In economics, it is an individual's pleasure, happiness, or satisfaction

• Utility

• Marginal

The methodologies of economics are microeconomics and macroeconomics

• True

• False

Answer explanation

It is positive and normative economics

it represents points at which an economy is most efficiently producing its goods and services

• Production possibilities frontier

• Possible production frontier