Rob Has Decided to Buy a New Computer Based on the Relatively

question 235

Multiple Choice

Rob has decided to buy a new computer based on the relatively low costs, the features he can get, the warranty that comes with the computer, and the overall usefulness it will provide. He has made his decision based on

• A) rational motives.
• B) irrational motives.
• C) subjective motives.
• D) analytical motives.
• E) emotional motives.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It necessitates the need for prioritization and choice.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Production

The process of creating, manufacturing, or enhancing goods and services, involving the combination of resources like labor and raw materials.

Production Possibilities Frontier

The Production Possibilities Frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.