The Trade-Offs That Are Made Because of Scarcity

question 95

Multiple Choice

The trade-offs that are made because of scarcity

• A) are important in developing economies,but they do not apply to developed economies.
• B) are important in developed economies,but they do not apply to developing economies.
• C) are different when they involve the wants of people,but they are similar when they involve the needs of people.
• D) can be accurately made to the extent that they can be quantified.
• E) depend on the decision maker's value judgments about the relative importance of the alternatives.

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Definitions:

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others.

Rancher

A person who owns or manages a ranch, where livestock such as cattle or sheep are raised.

Farmer

A person involved in farming, cultivating living beings for consumption or raw materials.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, enabling more efficient trade.