Asked by Michelle Martin on Jun 19, 2024
Verified
Which statement is NOT one of the four principles that underlie individual choice?
A) Choices are necessary because resources are scarce.
B) Overall spending sometimes gets out of line with the economy's productive capacity.
C) "How much" is a decision at the margin.
D) People usually respond to incentives,exploiting opportunities to make themselves better off.
Individual Choice
Decision-making by individuals based on their preferences, resources, and trade-offs they face.
Productive Capacity
The maximum output that an economy can produce without increasing inflation, driven by available resources and technology.
- Acquire knowledge about the principle of scarcity and its consequences for allocating resources.
- Analyze the impact of incentives on individual behavior in economic models.
Verified Answer
RS
Ramona ScalesJun 22, 2024
Final Answer :
B
Explanation :
The statement "Overall spending sometimes gets out of line with the economy's productive capacity" is not one of the four principles that underlie individual choice. The four principles are the necessity of choices due to resource scarcity, decision-making at the margin, people responding to incentives, and people exploiting opportunities to make themselves better off.
Learning Objectives
- Acquire knowledge about the principle of scarcity and its consequences for allocating resources.
- Analyze the impact of incentives on individual behavior in economic models.