According to the Principle of Substitutability

question 30

Multiple Choice

According to the principle of substitutability:

• A) the price of basic commodities has risen because they cannot be substituted by alternatives.
• B) the five metals used in Simons' and Ehrlich's wager have since been substituted for others.
• C) human intellect devises creative ways to substitute new resources to solve resource scarcity.
• D) people are substitutable; those who die of starvation and disease will always be replaced by new births that result from increased population.

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Definitions:

BAT Model

The Behavior, Attitude, Technique (BAT) Model is a framework used for improving sales effectiveness and training by focusing on the behavior, attitude, and techniques of sales personnel.

Fixed Cost

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Opportunity Rate

The return a company foregoes by investing capital in one project over a potentially more profitable alternative.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving the direct sending of payments to a location accessible by the bank, which then deposits the funds into the company's account.