Multiple Choice
Which of the following is typically considered the first step in the economic decision-making process?
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0. Basic Principles of Economics
Scarcity and Choice
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In order to compare and evaluate choices, there must be a set of ______.
A
resources
B
constraints
C
criteria
D
prices
Verified step by step guidance1
Understand the context of the problem: it asks what is necessary to compare and evaluate choices in decision-making.
Recall that in microeconomics, to make a decision among alternatives, you need a basis or standard to judge them by.
Identify the options given: resources, constraints, criteria, and prices.
Analyze each option: resources are inputs, constraints limit choices, prices are costs, but criteria are the standards or principles used to evaluate and compare choices.
Conclude that the correct term to fill the blank is 'criteria' because it represents the set of standards needed to compare and evaluate different options.
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