Which Principle Underlies the Interaction of Individual Choices

question 21

Multiple Choice

Which principle underlies the interaction of individual choices?

• A) Choices are necessary because resources are scarce.
• B) There are gains from trade.
• C) "How much" is a decision at the margin
• D) People usually respond to incentives,exploiting opportunities to make themselves better off.

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Definitions:

Damaged Van

A van that has suffered physical harm or injury, impacting its value and functionality.

Repair

The process of restoring equipment, machinery, or property to its previous condition to ensure functionality.

Joint Product

Products that are generated simultaneously in the same process and cannot be distinguished until a certain point in production.

Scrap Price

The amount of money that can be received for materials or products that are considered waste or unusable in their primary form.