Question

1. what is an advantage of a merger?
2. the study of economics is important because it__________.
3. on a production possibilities curve, a country would be ( not at its potential, at its potential) ________ if it is operating on the curve and ________ if it is operating inside the curve.
4. define conspicuous consumption.
5. the american economic system is described as a __________ economy.
6. ________ makes the economic decisions in a market economy and ________ make these decisions in a command economy.

Explanation:

Question 13:

A merger is when two companies combine. Advantages include economies of scale (lower costs from larger operations), increased market share (bigger customer base), access to new technologies/resources (from the other company), and reduced competition (fewer rivals). For example, a tech company merging with a startup might gain new tech and talent.

Economics studies how societies allocate scarce resources. It’s important because it helps individuals make financial decisions (like budgeting, investing), businesses decide production/pricing, and governments create policies (tax, trade) to improve welfare, understand inflation/unemployment, and allocate public resources efficiently.

A production possibilities curve (PPC) shows maximum output combinations of two goods. Operating on the curve means using all resources efficiently, so the country is at its potential (full employment of resources). Operating inside the curve means some resources are unused (e.g., unemployment, idle factories), so it’s not at its potential (inefficient resource use).

Answer:

An advantage of a merger can be achieving economies of scale (lowering average costs by increasing production scale), increasing market share, accessing new technologies or resources, or reducing competition (examples include a merger to combine R&D efforts, expand into new markets, or eliminate a competitor).

Question 14: