Which of the following statements is CORRECT?
A)Resource scarcity is not a major concern in the rich countries of the world.
B)Some opportunity costs are zero.
C)An economic situation is in equilibrium when no individual would be better off taking a different action.
D)Some very talented, skilled individuals who can do everything better than most people should not specialize in doing any one thing.

Question

Quizplus · Accepted Answer

In an economic situation in equilibrium, no individual can achieve a higher level of satisfaction or well-being by changing their current behavior or action. This is because all resources are allocated efficiently, and there is no alternative allocation that would benefit anyone without harming someone else.

Option A is incorrect because even in rich countries, resources are finite, and scarcity exists.

Option B is incorrect because opportunity costs are the benefits foregone of the next best alternative foregone. Therefore, all choices have an opportunity cost, and it cannot be zero.

Option D is incorrect because even though an individual may be very talented in many areas, they cannot perform all tasks equally well. Specialization allows individuals to focus on their strengths, and this leads to efficient resource allocation and maximizes output in the economy.

Which of the Following Statements Is CORRECT