1) Economics does not study correct or incorrect behaviors, but rather it assumes that economic agents make the best decisions given their knowledge of the costs and benefits. What term best describes this behavior?

A. equitably

B. rationally

C. emotionally

D. selfishly

2) According to economics, what causes us to have to make choices?

A. unemployment.

B. scarcity.

C. greed.

D. unlimited resources.

3) What is the term in economics by which a group of buyers and sellers of a product come together to trade?

A. collective

B. cooperative

C. market

D. trade-off

4) If a commercial dairy farm wants to raise funds to purchase feeding troughs, in which market does it do so?

A. output market.

B. product market.

C. factor market.

D. dairy products market.

5) Danielle Ocean pays for monthly...