Question

What occurs when individuals make decisions in which benefits exceed costs?

A. They are removing the opportunity costs of decisions.


B. They are using a rational decision-making model.


C. They are making irrational economic decisions.


D. They are eliminating all trade-offs of the decision.

Answer 1

Answer:Scarce resources diminish as they are used and almost all resources are scarce.

In order to use a scarce resource, you are inherently using the resource for one purpose and not an alternative.

The cost of using a resource is called the opportunity cost: the value of the next best alternative that you could be using the resource for instead.

Key Terms

Scarce: Insufficient to meet demand.

Opportunity cost: The value of the best alternative forgone.

Step-by-step explanation: