Which of the following statements is true of economic reasoning?
A) Economic reasoning hampers optimal decision making.
B) Economic reasoning can only be used with normative choices.
C) Economic reasoning implies that leisure time is free and costless.
D) Economic reasoning helps people make the best use of scarce resources.

Question

Quizplus · Accepted Answer

Economic reasoning involves analyzing the costs and benefits of different options, taking into account the scarcity of resources. Therefore, it helps people make the best use of scarce resources. Option A is incorrect as economic reasoning aims to optimize decision making. Option B is incorrect because economic reasoning can be used with both normative and positive choices. Option C is incorrect as leisure time has an opportunity cost and is not free or costless.

Which of the Following Statements Is True of Economic Reasoning