Which of the following statements is true?
A) Anytime you have to decide which action to take, you are experiencing economic equity.
B) Trade-offs do not apply when consumers purchase a product for which there is excess supply, such as in 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 resources are unlimited.

Question

Quizplus · Accepted Answer

Trade-offs are a fundamental concept in economics, and every individual is faced with making them regardless of their economic status. Option A is incorrect because economic equity refers to fairness and justice in the distribution of economic resources and opportunities, not decision-making. Option B is incorrect because trade-offs apply in any situation where resources are limited, regardless of whether there is excess supply of a particular product. Option D is incorrect because economics studies how we allocate scarce resources to satisfy our unlimited wants and needs, not just trade-offs.

Which of the Following Statements Is True