The Most Important Economic Concept to Consider When Deciding Whether

question 133

Multiple Choice

The most important economic concept to consider when deciding whether to produce a product domestically or import the product is

• A)law of supply
• B)law of demand
• C)opportunity cost
• D)law of increasing cost

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Definitions:

Credit Cards

Financial instruments issued by banks that allow holders to borrow funds at the point of sale, intended for short-term financing with the obligation of paying back the borrowed amount plus interest.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable instruments.

Debt

is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.

Assets

Resources owned by a person or business, which are expected to produce positive economic value.