One major feature of the economic perspective is: A) that scarcity is more important than choice. |
A) that scarcity is more important than choice. B) the assumption of purposeful behavior by individuals. |
The production possibilities table below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. Production Possibilities Refer to the table above. What is the opportunity cost of producing the third unit of capital goods? A) 4 units of consumer goods |
D) 6 units of consumer goods |
What is the economic meaning of the expression that "there is no such thing as a free lunch"? A) It indicates that products only have value because people are willing to pay for them. |
B) It means there is an opportunity cost when resources are used to provide "free" products. |
The term "scarcity" in economics can refer to the fact that: A) it is impossible to produce too much of any particular good or service in a market economy. |
D) no country can produce enough products to satisfy everybody's economic wants. |
Which is an illustration of a microeconomic question? A) Is the economy experiencing a declining rate of inflation? |
C) Will a new type of television set increase the number of buyers? |
Economics can best be described as the study of: A) how to use productive resources to maximize income level. |
B) how people, institutions, and society make choices under conditions of scarcity. |
Are the goods that businesses offer for "free" to consumers also free to society? A) No, because society does not assign a value to free goods. |
C) No, because scarce resources were used to produce the free goods. |
If a consumer has an income of $200, the price of X is $5, and the price of Y is $10, the maximum quantity of X the consumer is able to purchase is: A) 10. |
B) 40. |
A point inside the production possibilities curve is: A) unattainable and the economy is inefficient. |
C) attainable, but the economy is inefficient. |
As a consequence of the condition of scarcity: A) individuals and communities have to make choices from among alternatives. |
A) individuals and communities have to make choices from among alternatives. |
The purpose of the ceteris paribus assumption used in economic analysis is to: A) restrict the analysis to the effect of a single economic factor. |
A) restrict the analysis to the effect of a single economic factor. |
Macroeconomics focuses on: A) total output and the general level of prices in the economy. |
A) total output and the general level of prices in the economy. |
Henry wants to buy a book. The economic perspective suggests that Henry will buy the book if: A) the marginal benefit of the book is greater than its marginal cost. |
A) the marginal benefit of the book is greater than its marginal cost. |
The following economy produces two products. PPC Refer to the table. The total opportunity cost of the three units of steel is: A) 20 units of wheat. |
B) 45 units of wheat. |