Which of the Following Is Correct

question 436

Multiple Choice

Which of the following is correct?

• A) 1 + MPS = MPC
• B) 1 - MPS = MPC
• C) 1 - MPS = MPC + 1
• D) 1 - MPS = MPC - 1

---

Definitions:

Opportunity Costs

The cost of missing out on the top alternative by deciding on another option.

Scarce Resources

Natural, human, and artificial resources that are limited in supply and cannot satisfy all human wants and needs.

Secondary Effects

The unintended consequences of economic actions, which can occur as indirect results of a policy or event.

Economic Actions

Decisions or behaviors taken by individuals, firms, or governments that affect the production, distribution, and consumption of goods and services.