Asked by Kristen Salcedo on Jul 22, 2024
Verified
Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that
A) people respond to incentives.
B) rational people think at the margin.
C) people face tradeoffs.
D) improvements in efficiency sometimes come at the expense of equality.
Tradeoffs
Refers to the concept in economics that by choosing one option, another option is foregone.
Basic Principle
A fundamental rule or concept that forms the foundation of a system, theory, or idea.
- Master the rudimentary principles of economics, including scarcity, the cost of foregoing options, trade-offs, and the allocation of resources.
Verified Answer
GH
Garrison HawkinsJul 25, 2024
Final Answer :
C
Explanation :
Candice's situation illustrates the principle that people face tradeoffs, as she must choose between two desirable activities that cannot be done at the same time.
Learning Objectives
- Master the rudimentary principles of economics, including scarcity, the cost of foregoing options, trade-offs, and the allocation of resources.