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Questions and Answers
Which type of economic principle predicts how people will behave?
Which type of economic principle predicts how people will behave?
- Normative economic principle
- Welfare economics
- Positive economic principle (correct)
- Market efficiency
Which field of study focuses on how the allocation of resources affects economic wellbeing?
Which field of study focuses on how the allocation of resources affects economic wellbeing?
- Normative economics
- Market efficiency
- Welfare economics (correct)
- Positive economics
What does market efficiency use welfare economics to assess?
What does market efficiency use welfare economics to assess?
- The benefits consumers and producers receive from taking part in the market
- The desirability of the outcome of free markets
- The equilibrium price and quantity in a competitive market (correct)
- The maximum amount that a buyer will pay
What does consumer surplus measure?
What does consumer surplus measure?
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What does willingness to pay represent?
What does willingness to pay represent?
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