How does scarcity affect the range of possible choices that decision makers face?
A. It narrows the choice to a single option.
B. It narrows the range of choices.
C. It increases the possible methods for solving problems.
D. It clarifies the choices by highlighting the best solutions.
E. It simplifies the choices and therefore widens the range.
Answer: B
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No clearly defined socially preferred outcome may result when majority voting on outcomes because
A) often voters don't understand the outcomes. B) voting may violate the independence of irrelevant alternatives. C) voting may lead to incomplete preferences. D) voting may lead to non-transitive preference.
Under perfect competition, a firm is a price taker because:
a. setting a price higher than the going price results in profits. b. each firm's product is perceived as different. c. each firm has a significant market share. d. setting a price higher than the going price results in zero sales.