Asked by
Alexandra Fitzsimmons
on Dec 12, 2024
Verified
Which of the following statements is correct about the economic way of thinking?
A) If the buyer of a good gains, the seller must lose an equal amount.
B) The value of goods is objective; it is equal to the cost of supplying the good.
C) Opportunity costs will always be incurred when scarce resources are used to produce a good.
D) Changes in incentives generally have no effect on human behavior.
Opportunity Costs
Letting go of possible advantages in other alternatives when favoring one.
Scarce Resources
Resources that are limited in availability and can be depleted, which necessitates efficient utilization and management.
Economic Thinking
A way of analyzing problems by considering the costs and benefits of different choices and actions.
- Acknowledge that there is no such thing as a totally free good or service; choosing one option involves giving up others.
- Master the concept of rational decision-making by examining the trade-offs between marginal benefits and marginal costs.
Verified Answer
RB
Learning Objectives
- Acknowledge that there is no such thing as a totally free good or service; choosing one option involves giving up others.
- Master the concept of rational decision-making by examining the trade-offs between marginal benefits and marginal costs.