Which of the following statements is true?
A) Anytime you have to decide which action to take you are experiencing economic equity.
B) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale.
C) Every individual, no matter how rich or poor, is faced with making trade-offs.
D) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited.

Question

Quizplus · Accepted Answer

Every individual has limited resources and unlimited wants, so they have to make choices and trade-offs. This is a fundamental principle of economics known as scarcity. Option A is incorrect because economic equity is related to fairness and just distribution of resources, not related to decision-making. Option B is incorrect because even during a stock clearance sale, consumers have to make a choice and trade-off whether they want to buy the discounted product or not. Option D is incorrect because while economics studies trade-offs, it is not the only thing it studies. Economics also studies production, consumption, and distribution of goods and services.

Which of the Following Statements Is True