QUESTION 2 The fundamental problem of economics is: a. How to get government to operate efficiently b. The scarcity of resources relative to human wants. c. How to create employment for everyone. d. The law of increasing opportunity costs. QUESTION 3 The term "externalities" refers to: a. Black-market activity. b. All costs and benefits of a market activity borne by a third party. c. llegal economic activity. d. The impact on markets of goods imported from foreign countries.

QUESTION 2 The fundamental problem of economics is: a. How to get government to operate efficiently b. The scarcity of resources relative to human wants. c. How to create employment for everyone. d. The law of increasing opportunity costs. QUESTION 3 The term "externalities" refers to: a. Black-market activity. b. All costs and benefits of a market activity borne by a third party. c. llegal economic activity. d. The impact on markets of goods imported from foreign countries.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

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