Table 161 - Obstacles to the Success of Economic Policy

question 116

Multiple Choice

Table 16.1 - Obstacles to the success of economic policy
-When faced with rising prices,the Republicans and the Democrats disagree about how consumers will respond to a tax increase.(Choose from Table 16.1)

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Societal Choices

Decisions made by a society as a whole about the allocation of resources and priorities among different uses.

Opportunity Cost

The worth of the best alternative given up as a consequence of a decision made.

Utility

The subjective benefit or satisfaction a person expects from a choice or course of action.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.