Which of the Following Statements Is False

question 81

Multiple Choice

Which of the following statements is false?

• A)Anytime you have to decide which action to take you are facing an economic trade-off.
• B)Trade-offs do not apply when the consumers purchase a product for which there is excess supply,such as a stock clearance sale.
• C)Every individual,no matter how rich or poor,is faced with making trade-offs.
• D)Economics is a social science that studies the trade-offs we are forced to make because of scarcity.

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Definitions:

Variable Costs

Costs that vary directly with the level of production.

Marginal Revenue

The increase in revenue that results from the sale of an additional unit of output.

Total Revenue

The total income received by a firm from the sale of its goods or services, calculated as the unit price multiplied by the quantity sold.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices during a specified time period.