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

Answer: (D)

Verified step by step guidance

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.