Moderate

What is the cost effective ?

Correct answer: C. Economical in terms of the goods or services received for the money spent

  • A. Cheap things
  • B. Substandard things
  • C. Economical in terms of the goods or services received for the money spent
  • D. Free in terms of the goods or services received for the money spent

Explanation

Cost-effective means obtaining the greatest or suitable value in goods or services for the money spent. It does not necessarily mean the cheapest or free option.

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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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