Economic theory
a. is a set of definitions, postulates, and principles assembled in a manner that helps make cause-and-effect relationships clear in economics.
b. is like a guidebook in that it points out what to look for.
c. provides economists with a common language and way of thinking about how the world works.
d. is all of the above.
D
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Globalization refers to a process involving many complex elements, one of which is that
a. the time it takes for goods, people, information, and money to flow across borders is expanding. b. lower transportation costs mean cheap labor in distant places can be exploited. c. the world is increasingly defined by separate markets rather than one dominant market. d. international trade decreases relative to domestic trade.
The three questions every economic system must answer must include which of the following?
a. Where the goods and services should be produced? b. What goods and services should be produced? c. Who should produce the goods and services? d. All of the questions must be answered for the economic system to work.