Rational decision making under conditions of scarcity requires individuals to
A) place a monetary value on everything.
B) know the prices of all goods they might buy.
C) be alert to price reductions on desired products.
D) understand that trade-offs are necessary.
E) earn as much income as possible.

Question

Quizplus · Accepted Answer

Rational decision making under conditions of scarcity requires individuals to understand that trade-offs are necessary. This means that they cannot have everything they want and must make choices based on their priorities and available resources. Monetary value, knowledge of prices, and income are all important factors, but the ability to make trade-offs is essential. Being alert to price reductions can be helpful but is not the most important factor in rational decision making under scarcity.

Rational Decision Making Under Conditions of Scarcity Requires Individuals to