Multiple Choice
In the context of scarcity and choice, who is required to make trade-offs?
67
views
0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
When a person starts taking public transportation and riding a bicycle instead of driving a car, what are they primarily reducing?
A
Their marginal utility from transportation
B
Their demand for public goods
C
Their opportunity cost of commuting
D
Their consumption of scarce resources
Verified step by step guidance1
Step 1: Understand the concept of scarce resources in microeconomics. Scarce resources are limited inputs used to produce goods and services, such as time, money, fuel, and road space.
Step 2: Analyze the change in behavior: switching from driving a car to using public transportation and riding a bicycle. This change typically reduces the use of resources like fuel, parking space, and road congestion.
Step 3: Recognize that by using less fuel and road space, the person is reducing their consumption of these scarce resources, which are limited and valuable in the economy.
Step 4: Differentiate this from other options: marginal utility refers to additional satisfaction, demand for public goods relates to goods provided by the government, and opportunity cost is the value of the next best alternative forgone.
Step 5: Conclude that the primary reduction is in the consumption of scarce resources, as the person uses fewer limited inputs by switching transportation modes.
Related Videos
Related Practice
