Which of the following is not a principal method of financing today?

Mr. Chan has an income of $20 that he is spending on donuts and cheese in such amounts that he derives 25 utils of satisfaction from the donuts and 25 utils of satisfaction from the cheese. On the basis of this information we:

A) cannot say whether or not Chan is buying donuts and cheese in equilibrium amounts. B) can say that Chan should buy more cheese and fewer donuts. C) can say that Chan should buy more donuts and less cheese. D) can say that Chan is buying the utility-maximizing amounts of donuts and cheese.

Which of the following statements best describes the study of economics? Economics studies how

A) to organize production so that scarcity does not occur. B) firms make profits. C) we make choices in the face of scarcity. D) to create incentives so that scarcity does not exist. E) businesses reach decisions.