The model that economists use for illustrating the process of individual choice in a situation of scarcity is the budget constraint, sometimes also called the _______________, a diagram which shows what choices are possible.
A) opportunity set
B) consumption choice
C) time value of money
D) risk premium

Question

Quizplus · Accepted Answer

The budget constraint, also known as the opportunity set, is a model used by economists to illustrate the process of individual choice when faced with scarcity. It shows the various choices available to an individual given their budget constraints.

The Model That Economists Use for Illustrating the Process of Individual