Which One of the Following States a Central Element of the Economic

question 109

Multiple Choice

Which one of the following states a central element of the economic way of thinking?

• A) Scarce goods are priceless.
• B) Incentives matter--human choice is influenced in predictable ways by changes in personal costs and benefits.
• C) The realism of the assumptions is the best test of an economic theory.
• D) When deciding how to allocate time, the concept of opportunity cost is meaningless.

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Definitions:

Target Selling Price

The price at which a company aims to sell its product after considering desired profit margins over cost.

New Product

A product that has been recently developed or introduced to the market, offering new features or benefits not previously available.

Value-Based Pricing

A pricing strategy where the price is set based on the perceived value to the customer rather than the cost of the product or market prices.

Differentiation Value

The unique attributes or benefits that make a product or service stand out from competitors, enhancing its market appeal.