Which Principle Underlies the Interaction of Individual Choices

question 44

Multiple Choice

Which principle underlies the interaction of individual choices?

• A)Choices are necessary because resources are scarce.
• B)There are gains from trade.
• C)"How Much" is a decision at the margin
• D)People usually respond to incentives,exploiting opportunities to make themselves better off.

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Definitions:

Working Capital Management

The process of managing the short-term assets and liabilities to ensure a company can continue its operations and meet its financial obligations.

Debt

An amount of money borrowed by one party from another, often used by businesses and governments to fund operations and projects.

Equity

Ownership interest in a company, typically represented by shares, indicating the proportion of the company's assets owned by the shareholders after all liabilities are paid.