The correct choice is (b) Opportunity cost. Selecting one option requires giving up the benefit of the other alternative, which precisely defines opportunity cost when managing limited financial resources against competing desires.
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Pure market systems cause monopolies, extreme inequality and neglect public welfare, while pure planned systems stifle entrepreneurship, efficiency and individual freedom. A mixed economy balances market-driven growth with government social welfare safeguards.
Price controls are implemented on life-saving medicines, hand sanitisers, basic food grains and agricultural minimum support prices. Governments cap prices to prevent hoarding and exploitation, while price floors protect farmers from incurring losses.
I refute this statement because income growth increases demand primarily for normal goods. For inferior goods, higher purchasing power causes consumers to switch to superior alternatives, reducing the demand for cheaper low-quality goods.