95 Best Economics Questions and Answers (Q&A) - ProProfs Discuss

Anika Nicole, Wordsmith
Answered: Jun 27, 2018

MR = MC rule applies both to pure monopoly and pure competition. Basically, MC=MR is a profit maximization formula where MC stands for Marginal Cost and MR stands for Marginal Revenue. ...Read More

3 Answers

3051 views

What guides economic activity in a market economy?

L.Steven
Answered: Jan 07, 2018

The market economy is a special kind of economy in which the economic decisions and ultimately the market is guided by self-interests and the prices. There is little, if any government...Read More

4 Answers

2668 views

What observations were made famous by Adam Smith in his book "The Wealth of Nations"?

Ken Wilson, Marketing Analyst
Answered: Jan 17, 2019

Letter D is the correct answer to this number. Adam Smith, a famous economist, quoted in his book that firms and households are guided by some invisible hand that leads them to market outcomes...Read More

2 Answers

1581 views

What is the opportunity cost of going to college?

C. Lopez, Chauffer
Answered: Mar 07, 2019

The value of the best opportunity a student gives up to attend college. Opportunity cost is also referred to as alternative cost. It is the cost of given up something to gain something else....Read More

2 Answers

1026 views

What is a primary reason why nations conduct international trade?

C.Dorothy
Answered: Feb 28, 2018

International trade has been a thing as long as there have been multiple nations aware of one another. International trade occurs because resources are not evenly distributed amongst nations....Read More

2 Answers

882 views

Where does the phenomenon of scarcity stem?

John Smith
Answered: Sep 27, 2023

Resources are limited.

3 Answers

876 views

What is the classic example of paradox of value?

J. Harty, Writer
Answered: Feb 28, 2019

It is a known fact that the water that people can drink and use has considerably lessened over the past years. There was a time when clean water was abundant and it will be easy for people to get...Read More

2 Answers

816 views

What is positive economic analysis?

Tclea
Answered: Sep 27, 2023

There is much more disagreement among economists over positive economic analysis than over normative economic analysis

1 Answer

726 views

What are the characteristics of economies of scale?

John Smith
Answered: Sep 27, 2023

The average cost declines as output increases

1 Answer

680 views

What is the opportunity cost of an item?

Cypriot
Answered: Sep 27, 2023

What you give up to get that item.

1 Answer

666 views

What is the concept of opportunity cost?

H.Jennifer
Answered: Apr 23, 2018

In micro-economic theory, the opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice of a best alternative cost while making a decision. Opportunity cost is...Read More

3 Answers

664 views

What is meant by equilibrium in chemistry?

Robert Hazlewood, Senior Executive
Answered: Feb 26, 2019

The correct answer to this question is a decrease in the price of the flour because white bread uses flour as one of its primary ingredients, the price of this commodity will affect the cost to...Read More

2 Answers

626 views

How would you define scarcity?

Tclea
Answered: Sep 27, 2023

Scarcity refers to the situation in which unlimited wants exceed limited resources

1 Answer

615 views

What are the main economic gropus?

E. Austin
Answered: Mar 27, 2019

Economic agents respond to incentives, car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area, banks do not take steps...Read More

1 Answer

614 views

Why do we need the government?

Ken Wilson, Marketing Analyst
Answered: Jan 17, 2019

Though the government does not give free food to us directly, it provides jobs to the people for us to have the capability to buy food for ourselves. The government also provides food and social...Read More

3 Answers

569 views

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