Which of the Following Is Part of the Economic Way

question 147

Multiple Choice

Which of the following is part of the economic way of thinking?

• A) Opportunity costs will always be incurred when scarce resources are used to produce a good.
• B) When the cost of an option increases, individuals will be less likely to choose it.
• C) In addition to their immediate direct effects, economic actions often generate secondary effects that are observable only after the passage of time.
• D) All of the above are part of the economic way of thinking.

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Definitions:

Organizational Expenses

Costs related to the formation and operation of a business entity, such as legal fees, accounting services, and incorporation fees.

Debit Balance

An accounting term referring to the remaining balance in an account when total debits exceed total credits.

Issue Price

The price at which new shares are offered to the public by a corporation during its initial public offering or subsequent issuances.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a bond above its face value.