The Problem of Scarcity Means That People Face Trade-Offs

question 19

Multiple Choice

The problem of scarcity means that people face trade-offs. Which of the following trade-offs are the concern of microeconomics?

• A) Trade-offs faced by consumers in the purchase of goods
• B) Trade-offs faced by workers between work and leisure
• C) Trade-offs faced by firms in what goods to produce
• D) all of the above

---

Definitions:

Procure-to-Pay (P2P)

The process that businesses use to requisition, purchase, receive, and pay for goods and services.

Order Cycle Times

The duration between when a customer places an order and when they receive the product, often a critical metric in supply chain management.

Administrative Costs

Expenses related to the general operation of a business, including salaries of office staff, rent, and utilities.

Unambiguous Description

A clear, precise, and specific explanation or depiction that avoids confusion or misinterpretation.