Final answer:
People choose one economic activity over another based on their preferences, constraints, costs, benefits, and information. These decisions are shaped by personal tastes, income, prices, and location, all of which are considered in economic theory.
Step-by-step explanation:
Factors Influencing Economic Choices
What causes people to choose one economic activity over another? The answer is (d) All of the above. People make economic decisions based on a combination of factors including preferences, constraints, costs, benefits, and information about available options. These decisions are influenced by their personal preferences, as well as objective factors like income levels, the prices of goods and services, and geographic location. The economic theory seeks to explain how consumers utilize their limited income to make choices about what goods and services to purchase, taking into account the complex interplay of these various influences on decision-making.