Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

What is the basic assumption behind the economic problem?

  • AFactors of production are finite.
  • BIndividuals are the best judges of their own wellbeing.
  • CIndividuals can be relied upon to behave rationally.
  • DThe principal aim of private firms is profit maximisation.

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