Define the three key principles of economics. What will be an ...

[LCritchfi]

Define the three key principles of economics.
 
  What will be an ideal response?

Question 2

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.
 
  A) raise; increase
  B) raise; decrease
  C) lower; increase
  D) lower; decrease

[JYan]

Answer to Question 1

a) Optimization: Optimization refers to the process of choosing the best option from a set of alternatives, given the available information.
b) Equilibrium: Equilibrium is a special situation where everyone is simultaneously optimizing, so that nobody would benefit personally by changing his or her behavior.
c) Empiricism: Empiricism is analysis that is evidence-based as it uses data to test theories and to determine what is causing things to happen in the world.

Answer to Question 2

C

[LCritchfi]

Thanks for the timely response, appreciate it

[cpetit11]

Excellent