You have been invited to the "Party of the Year", but the next day you have the final exam in a required course in your major. Which Principle of Economics best descr decision?

a. trade can make everyone better off

b. people face trade offs

c. governments can sometimes improve market outcomes

d. people respond to incentive:s

Question

Business

Josephine Meza

9 January, 15:25

You have been invited to the "Party of the Year", but the next day you have the final exam in a required course in your major. Which Principle of Economics best descr decision?

a. trade can make everyone better off

b. people face trade offs

c. governments can sometimes improve market outcomes

d. people respond to incentive:s

+1

Answers (1)

Know the Answer?

Kaelyn Mcintosh · Answer 1

The correct answer is letter "B": people face trade offs.

Explanation:

Trade-offs born from the basic economic problem of scarcity. People have unlimited wants and needs but limited resources to fulfill them. Then, to maximize the benefit, people must sacrifice part of one need to satisfy more of another and obtain a more suitable satisfaction.

Thus, in the example the source being traded-off is time.