Question

Monica has $500 to spend and wants to buy either a new snowboard or a new laptop. Both the snowboard and the laptop cost around $500, so she can only buy one. This illustrates the basic concept that:a. everyone is always acting in his or her own self-interest.

b. everyone has an unlimited supply of resources.
c. people respond to incentives.
d. people face trade-offs

Answer 1

d. people face trade-offs

Step-by-step explanation:

Monica has to choose between two options. If she chooses one, she forgoes the other option. This is known as trade off.

Economic agents face trade offs because resocurces are limited and wants are unlimited.

In the question, Monica has limited resocurces which is money. She has just $500.

But has wants that exceeds her available resources.

I hope my answer helps you