Praxis 5004 Practice Test Practice Question
Consumers and producers primarily make economic choices as a result of
Correct Answer: C
Rationale: Consumers and producers primarily make economic choices due to the scarcity of resources. Scarcity compels individuals and businesses to prioritize their needs and wants, leading to informed decision-making about resource allocation.
Option A, government regulations, can influence choices but does not drive them as fundamentally as scarcity. Option B, absolute advantage, refers to productivity differences, which affect trade but not the basic decision-making process. Option D, the division of labor, enhances efficiency but is a result of choices made in response to scarcity rather than the primary cause of those choices.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now