Economics - Study Mode

[#956] He described economics as a science of material welfare
Correct Answer

(B) Marshall

Explanation

Solution: Marshall described economics as a science of material welfare. Marshall's view is that economics studies all the actions that people take in order to achieve economic welfare. In the words of Marshall, "man earns money to get material welfare."

[#957] Economic profit is
Correct Answer

(B) Total revenue minus total cost

Explanation

Solution: Economic profit is Total revenue minus total cost. Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. Economic profit = total revenue – (explicit costs + implicit costs).

[#958] Unit cost is another name for
Correct Answer

(C) ATC

Explanation

Solution: Unit cost is another name for ATC. Average total cost (ATC): the per-unit cost of output.

[#959] Which statement relates to macroeconomics?
Correct Answer

(D) The government has failed to control inflation

Explanation

Solution: The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

[#960] Ceteris Paribus means
Correct Answer

(A) Other things remaining same

Explanation

Solution: Ceteris Paribus means other things remaining same. The Latin phrase ceteris paribus – literally, “holding other things constant” – is commonly translated as “all else being equal.” A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same.