Choices must made by individuals, firms, and the economy as a whole, because of a

Economics Dec 12, 2020

Choices must made by individuals, firms, and the economy as a whole, because of

a. rationality;

b.scarcity;

c.diminishing returns;

d.competitive market;

e.none of the above.

The microeconomic perspective

a. involves analysis of the behavior of the economy as a whole;

b. studies the rate of productivity growth in each sector;

c. is a top-down view of the economy;

d. is a bottom-up view of the economy.

e. b. and d.

Expert Solution

1) The answer is: b.scarcity. The scarcity of resources requires society to make certain choices about who gets those resources and how those resources are allocated.

2) The microeconomic perspective: d. is a bottom-up view of the economy. Microeconomics studies the product and then makes theories about the macro economy based on consumer relationships at the product level.

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