Answer:
The significance of the given terms are as follows:
A. Opportunity cost: Opportunity cost shows the relationship between scarcity and choice. Opportunity cost is used to ensure the efficient use of scarce resources.
B. Market Economy: Market economy is defined as the market where production and prices of products are decided by privately owned businesses. Market economy increases the efficiency, productivity, and innovation in a market. For example: In a free market, all the pricing and production decision are taken by business rather than the government.
C. Free enterprise system: Free enterprise is the freedom of business regulation and individuals. It gives benefits to the business to hire workers freely and individuals to work in the organization of their choice.
D. Tariff: A tariff is a tax imposed on exports or imports between sovereign states. Tariffs are used to [rotect domestic industries by imposing tax on the imports that increase the price of the goods and products in the domestic markets and it also serve as a source of revenue.
