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The three concepts of opportunity cost, marginal decision making and diminishing returns are introduced as part of:
AThe legal frameworks
BThe political process
CThe economic way of thinking
DThe accounting standards
Answer & Solution
Correct answer: C. The economic way of thinking
1. Economics is presented as a method as much as a body of facts.
2. Discussion of scarcity continues into the economic way of thinking.
3. It does so by first introducing three critical concepts.
4. Those concepts are opportunity cost, marginal decision making, and diminishing returns.
5. Together they form the toolkit applied to every later topic.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_
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