Features That Everyone Agrees Are Necessary to Solve the Problem

question 21

Multiple Choice

Features that everyone agrees are necessary to solve the problem or meet the opportunity are called:

• A) desired features.
• B) essential features.
• C) mandatory features.
• D) minimum features.
• E) requested features.

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Definitions:

Income Effect

The change in individuals' consumption patterns due to an increase or decrease in their income, affecting their purchasing power.

Substitution Effect

The economic principle that as the price of a good rises, consumers will replace it with cheaper alternatives, whereas if the price falls, the good will replace more expensive alternatives.

Economic Rent

Income derived from the ownership or control of a scarce resource, exceeding the income that would cause the resource to be brought into use.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource.