Which of the Following Is Not an Example of the Use

question 35

Multiple Choice

Which of the following is not an example of the use of the problem solving perspective provided by economics?

• A)An investor considers the tax consequences of selling stocks in order to buy bonds (which she believes offer a better return).
• B)A rancher recognizes that raising more cattle this year will damage his pasture and limit next year's herd size.
• C)The Fogelberg family takes its vacation at Lake Arrowhead this year simply because they have done so for as long as anyone can remember.
• D)An economics student contemplates the other subjects that she should be studying before deciding to study economics this evening.

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Definitions:

Porter

Michael Porter, a renowned economist known for his theories on economics, business strategy, and competitive advantage.

Industry

The sector of an economy that is concerned with production and manufacturing of goods, or provision of services.

Entry Barriers

Obstacles that prevent new competitors from easily entering an industry or area of business.

Competitors

Other businesses or individuals that offer similar products or services within the same market, competing for the same set of customers.