In economic terms every action entail________________?
Correct answer: C. opportunity costs
- A. fixed costs
- B. risk
- C. opportunity costs
- D. prime costs
Explanation
Every choice uses resources that could have been used for another purpose, creating an opportunity cost. Fixed, prime, and other accounting costs apply only to particular production or financial situations.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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