Which of the following statements is true?

A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as with a stock clearance sale.
B) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited.
C) Every individual, no matter how rich or poor, is faced with situations that require trade-offs.
D) Any time you have to decide which action to take you are experiencing economic equity.

C

Economics

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If expectations are adaptive, how will the economy adjust to a new long-run equilibrium in response to contractionary monetary policy? Support your answer with a graph of the Phillips curve

What will be an ideal response?

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If AE < Y, which of the following will NOT occur?

A) inventories will decline B) actual investment will be more than planned investment C) employment will decline D) GDP will decline

Economics