Question

1. Explain the process of making a rational choice about buying a product or service; what are you comparing?

What is quantity supplied in the market place?

Describe the benefits of a capitalist economy.

Answer 1

1) Explain the process of making a rational choice about buying a product or service; what are you comparing?

Answer: The process of making a rational choice is a multi-step process, from problem identification through solution, and making sound logical decisions. It involves comparison of the commodity or service with similar commodity or service in terms of price and utility, thus involves the comparison of the costs and benefits of that incremental change

2) What is quantity supplied in the market place?

Answer: Quantity supplied refers to quantity of a product that producers are willing to sell in the market place at a particular point of time at a particular price

3) Describe the benefits of a capitalist economy.

Answer: Benefits of a capitalist economy are:

--Utilization of resources efficiently and economically

-- Economic freedom for producers, consumers and the workers

-- Due to inbuilt flexibility allows making changes as per the needs and circumstances of the economy

-- Encourage technological progress and new innovations

-- Capital formation is encouraged by capitalism

-- Improves the quality of goods

-- Effective control of production process