Which of the following is a method used in economics to rank options by priority?

• A. Measuring opportunity cost
• B. Calculating the equilibrium price
• C. Using a preference ordering
• D. Applying the law of demand

Answer: (C)

Verified step by step guidance

1. Understand that in economics, ranking options by priority involves comparing different choices based on preferences or values assigned to them.
2. Recognize that 'preference ordering' is a method where options are ranked according to the decision-maker's preferences, from most to least preferred.
3. Recall that 'measuring opportunity cost' involves evaluating the cost of the next best alternative foregone, but it does not directly rank all options by priority.
4. Note that 'calculating the equilibrium price' is related to market balance and does not serve to rank options by priority.
5. Understand that 'applying the law of demand' describes the relationship between price and quantity demanded, not a ranking method.