Which of the following defines economics? Economics is the social science that studies ___________.
A. the best way of eliminating scarcity
B. the choices made to cope with scarcity, how incentives influence those choices, and how the choices are coordinated
C. how money is created and used
D. the inevitable conflict between self-interest and the social interest
Question 2
Refer to Figure 4-3. What area represents the deadweight loss at the equilibrium price of P1?
A) C + E B) C + E + H
C) G + H D) There is no deadweight loss at the price of P1.
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