What is the economic way of thinking, and why is it important? ...

[EY67]

What is the economic way of thinking, and why is it important?
 
  What will be an ideal response?

Question 2

Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?
 
  A) Both the market clearing price and equilibrium quantity will rise.
  B) The market clearing price will fall, but the equilibrium quantity will rise.
  C) The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise.
  D) The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.

[josephsuarez]

Answer to Question 1

The economic way of thinking provides a framework for analyzing solutions to economic problems. Since economic problems confront all of us much of the time, knowledge of economics will enable one to arrive at better decisions, and enable one to evaluate many public policy questions in a systematic manner.

Answer to Question 2

C

[EY67]

TYSM

[scikid]

Excellent