Microeconomics II: Shape Your Economic Worldview - Think Like an Economist

6 important questions on Microeconomics II: Shape Your Economic Worldview - Think Like an Economist

What theory states that it is believed that rationally the benefits of the decision outweighs the cost.

Rational Choice Theory

They are the building blocks of industry. They include raw materials, investment capital and manpower.

Factors of Production

This is where individuals looking to work are hired and and where people who are hired are paid.

Factor Market
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What is the formula of (MRS), marginal rate of substitution?

Amount of item willing to be given up / amount of item received in return

True or False. Luxury goods have a PED > 1. Their demand is elastic.

True

What is PED, CPED and IED?

Price Elasticity of Demand, Cross-Price Elasticity of Demand, Income Elasticity of Demand

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