Question

individuals work more and want fewer consumption goods Incorrect Question2 0/1 pts Most individuals choose careers in which they specialize, yet as consumers they have access to a wide variety of goods and services. What principle allows for this? opportunity cost scarcity Trade equity 1/1 pts Question 3

Answer 1

The right option is indeed C.

• Trade refers to the transactions that occur between the businesses or between a business or a consumer.
• It refers to the exchange of goods or services between one or more entities in exchange for money or in exchange of other goods and services.
• Even though trade allows people to produce only the goods and services in which they are highly specialised, it opens wide opportunities for them to select wide varieties of goods and services as customers.
• On one hand when trade allows them to produce goods and services as producers of a nation, it allows them to consume other goods and services as consumers.

The statement does not refer to the principle of opportunity cost, scarcity or equity. Because:-

• Opportunity cost refers to the benefit forgone when an individual has to choose one alternative over the another.
• The the principle of equity refers to the the principle of fairness in economics.
• While the scarcity principle refers to the limited supply of any good or service.