Which term describes the choice that people must make to meet their wants and needs?
A. Supply
B. Demand
C. Opportunity cost
D. Producers
C. Opportunity cost
The term that describes the choice people must make to meet their wants and needs is C. Opportunity cost.
The term that describes the choice that people must make to meet their wants and needs is C. Opportunity cost.
Opportunity cost refers to the cost of choosing one option or item over another. When individuals have limited resources or time, they need to make choices about how to allocate those resources or time to meet their needs or desires. However, by choosing one option, they consequently give up the opportunity to choose another option. This foregone alternative, or the benefit that is lost when choosing another option, is the opportunity cost.
To arrive at this answer, you might have considered the options A, B, and D. Here's why they are incorrect:
A. Supply: Supply is the quantity of goods or services that producers are willing to provide at a specific price level. It represents the relationship between price and the amount of a good or service businesses are willing to offer. It is not directly related to the choice individuals make to meet their wants and needs.
B. Demand: Demand is the quantity of goods or services that consumers are willing to buy at a specific price level. It represents the relationship between price and the amount of a good or service individuals are willing to purchase. While demand influences the choices people make, it does not specifically describe the choice individuals must make to meet their wants and needs.
D. Producers: Producers are individuals or entities that create goods or services to supply the market. They play a role in meeting the wants and needs of consumers but do not represent the choice individuals themselves must make.