Limited Problem-Solving Probably Would NOT Be Required in the Purchase

question 326

Multiple Choice

Limited problem-solving probably would NOT be required in the purchase of:

• A) running shoes.
• B) an encyclopedia.
• C) new suit.
• D) coffee maker.
• E) fast-food restaurant meal.

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Definitions:

Opportunity Cost

The value of the best alternative that must be forgone as a result of choosing a particular action or decision.

Law of Comparative Advantage

An economic principle stating that countries or individuals gain when they produce goods and services for which they have lower opportunity costs relative to others.

Low Opportunity Cost

A situation where the cost of forgoing the next best alternative is relatively minimal.

Productive Activity

An action or process that leads to the creation of goods or services which have value and contribute to the economy.