Indicate the answer choice that best completes the statement or answers the ques
ID: 1142360 • Letter: I
Question
Indicate the answer choice that best completes the statement or answers the question -1. The two words most often used by economists are a prices and quantities b resources and allocation c supply and demand d efficiency and equity 2 In a market economy a supply detemines demand and demand, in turn, determines prices b demand determines supply and supply, in turn, determines prices e the allocation of scarce resources determines prices and prices, in turn, determine supply and demand d supply and demand determine prices and prices, in turn, allocate the cconomy's scarce resources 3. The demand for a good or service is determined by a those who buy the good or service b the govermment c. those who sell the good or service d both those who buy and those who sell the good or serviceExplanation / Answer
1. c) supply and demand
These are the two golden words always used by the economists as the whole economy of any country totally is dependant upon the demand and supply of goods and services in the market.
2 d) supply and demand determine prices and prices, in turn, allocate the economy's scarce resources
Always in a market the prices of goods and services are very important and these are decided by the demand and supply situation and these prices later on decides the state of the scarce resources and finds out the way to use them.
3 d) both those who buy and those who sell the good or service
A market is formed by the buyers and sellers in the economy. Any one element missing will create problems. Demand and supply in the market determines the prices and demand and supply is created by both buyer and seller.