5 Questions
What is the main focus of economics?
The main focus of economics is the allocation of scarce resources.
How do economists use economic models?
Economists use economic models to help predict the behavior of variables and explain the cause of certain events.
What are assumptions in economics?
Assumptions in economics are beliefs that economists make about the behavior of individuals, even though they may not have definite proof.
What does it mean for something to be irrational?
Something is irrational if it is not based on clear thought or reason.
What are variables in economics?
Variables in economics are factors that affect a situation in a way that makes it uncertain what will happen.
Test your knowledge on the underlying assumptions in economics, as well as the reasons why consumers and producers may not always maximize their benefits and profits. Explore the basics of economics and understand how individuals make decisions about the allocation of scarce resources.
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