Economics is often described as a science of constrained choice. How do you justify this argument?
Economics deals with the allocation of limited resources to satisfy unlimited human wants. We need resources such as labor, capital, raw material etc, to produce goods and services to satisfy man's unlimited needs. These resources are not only scarce but they have more than one use. The scarcity of resources means humans are constrained in the choices they make about the goods and services they produce, and thus also about which wants they will ultimately satisfy.
You might also like to view...
If wages a firm pays it workers increase, then
A) the firm's long-run average cost curve shifts upward. B) the firm moves rightward along its long-run average cost curve to where it has diseconomies of scale. C) the firm's long-run average cost curve does not shift and there is no movement along the long-run average cost curve. D) the firm moves rightward along its long-run average cost curve but not necessarily to where it has diseconomies of scale.
According to the "beachhead effect," in order to undo the effects of a strong-dollar period, the real value of the dollar
A) must fall to at least half of its value before appreciation of the dollar began. B) must fall to the value it had before appreciation of the dollar began. C) must fall to a much lower level than it had before appreciation of the dollar began. D) must actually appreciate before it depreciates to undo the effects of a strong-dollar period.