Chapter 1, Problem 5AA

To determine

To find the correct option that satisfies the sentence.

Answer to Problem 5AA

Some economic choices are simple or easy, while others are complex.

Explanation of Solution

Economics is the study of human behavior which focuses on the judicious use of scarce resources to fulfill the unlimited wants of the people.

People have to make choices between the consumption of two goods. They have limited income which can be used to buy limited goods.

For instance, if there are two combinations of apples and oranges: (2 apples, 4 oranges) or (4 apples, 2 oranges). The person has to decide whether to purchase first combination with more oranges or to buy other combination with more apples. Onecannot buy both with limited purchasing power.

So, some choices are easy to make. But, on the other hand, some choices are complex especially when the consumer has to purchase a durable good like refrigerator or AC.