The order in which you should apply the four core principles of economics is:
A)the cost-benefit principle, the opportunity cost principle, the marginal principle, the interdependence principle.
B)the interdependence principle, the opportunity cost principle, the cost-benefit principle, the interdependence principle.
C)the opportunity cost principle, the marginal principle, the cost-benefit principle, the interdependence principle.
D)the marginal principle, the cost-benefit principle, the opportunity cost principle, the interdependence principle.

Question

Quizplus · Accepted Answer

The correct order to apply the principles of economics is to first consider the marginal principle, which analyzes the benefits and costs of small changes in decisions. Next, the cost-benefit principle should be applied to determine if the overall benefits outweigh the overall costs. Then, the opportunity cost principle should be considered in evaluating alternative choices and the potential costs of foregone opportunities. Finally, the interdependence principle should be applied to understand the impact of decisions on others and the broader economy. Therefore, the correct order is the marginal principle, the cost-benefit principle, the opportunity cost principle, and the interdependence principle, which is represented by option D.

The Order in Which You Should Apply the Four Core