Which of the following statements is false?
A) Anytime you have to decide which action to take you are facing an economic trade-off.
B) Every individual, no matter how rich or poor, is faced with making trade-offs.
C) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale.
D) Economics is a social science that studies the trade-offs we are forced to make because of scarcity.
C
You might also like to view...
When psychologists refer to the "Paradox of Choice", what do they mean?
a. More choices may lead people to avoid the decision all together. b. More choices always make people at least as well off (related to the option value principle). c. Risk-averse people sometimes prefer risk because of the thrill it provides. d. If two people with free will make simultaneous decisions, these may sometimes conflict.
Mathematically the marginal rate of substitution is
A. always a positive number. B. is equal to 1. C. sometimes a positive and sometimes a negative number. D. always a negative number.
The special-interest effect is significant because:
A. It corrects instances of spillover costs and benefits B. It can contribute to economic inefficiency in the public sector C. Capitalistic economies are based upon the pursuit of self-interest D. It causes quantity demanded to equal quantity supplied in competitive markets
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle?s budget is AC. At which point does Mr. Lingle spend exactly his income?
A. A. B. B. C. C. D. All of the above are correct.