Exam 3: The Fundamental Economic Problem: Scarcity and Choice

Economics examines the options open to households, business firms, governments, and entire societies by the limited resources at their command.

Hutch Technology makes computer monitors, which sell for $100 each.What is the opportunity cost of 10 monitors?

The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.

Which of the following is a good example of efficient specialization and voluntary exchange?

Which of the following events create an outward shift of the production possibilities curve?

The negative slope of a production possibilities frontier is a graphic representation of opportunity cost.

In a market system, the major coordination tasks are carried out

Which of the following ideas of Adam Smith has religious overtones?

If an economy wants to experience economic growth, what decision must it make and carry out? Explain.

Which of the following is considered by economists to be the most fundamentally scarce?

Ted got a ticket to this year's Super Bowl and paid the face value of $1,000.His cousin offered him $3,000 for the ticket.Ted chose to attend the game.From this, we can infer that Ted's value for this ticket was

A large government encounters a production possibilities frontier essentially the same as one faced by a business firm.

An optimal choice can be characterized as a decision made by someone who is satisficing.

According to the principle of increasing costs, as the production of one good expands, the opportunity cost of producing another unit of the good tends to increase.

The U.S.government spent over $4 trillion in budget year 2018.

Those from across the spectrum of political views tend to approve of markets because

Optimal decisions take into account

In a well-functioning market, high opportunity costs will be reflected in high monetary costs.

If the economy of Gwondanaland is growing more rapidly than the economy of Japan, most likely

A production possibilities frontier has a downward slope because