Compare the Actions of Each Person to Determine Which One

question 139

Multiple Choice

Compare the actions of each person to determine which one is satisfying a consumer need.

• A)Although Gary's vacation home suits his needs, he would rather be closer to the ocean so he is going to look for a new place.
• B)The crime rate in Tara's neighborhood has increased dramatically, so she is going to invest in a home security system.
• C)Fuchsia is the "in" color right now, so Jasmine decides to replace her winter coat for a new one in that color.
• D)Don heard his coworkers rave about a new mini-series shown on HBO, so he decides to sign up for cable television.
• E)Dolores is throwing a dinner party. To impress her guests, she orders lobster from the local seafood market.

---

Definitions:

Flow Variable

An economic measurement that describes quantities which are measured over a specified period of time, such as income, expenses, or investment.

Foreign Currency Reserve

Refers to the foreign currencies held by a central bank or a monetary authority, used to support its liabilities, stabilize its currency, and finance trade imbalances.

Income

The money received, especially on a regular basis, for work or through investments.

Opportunity Cost

The price paid for not choosing the next most favorable option when deciding or picking between different possibilities.