If an economy is operating at a point inside the production possibilities curve, Answer
Selected Answer: a. its resources are not being used efficiently.
. Question 2 .0.5 out of 0.5 points
The opportunity cost of an action is
Selected Answer: d. the highest valued alternative forgone as the result of choosing an option.
. Question 3 .0.5 out of 0.5 points
"If I didn't have a date tonight, I could save $75 and spend this evening Watching Football on TV." The opportunity cost of the date is Answer
Selected Answer: d. $75 AND spend this evening Watching Football on TV
. Question 4 .0.5 out of 0.5 points
Economic choice and competitive behavior are the result of
Selected Answer: a. scarcity.
. Question 5 .0 out of 0.5 points
Producers are willing to offer greater quantities for sale at higher prices because Answer
Selected Answer: b. they hire superior quality, higher-priced resources as production expands
. Question 6 .0 out of 0.5 points
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources Answer
Selected Answer: c. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.
. Question 7 .0 out of 0.5 points
Because private owners are held responsible for damages their property causes to the property of others, private owners have Answer
Selected Answer: a. a strong incentive to use their property now rather than conserving it for the future.
. Question 8 .0 out of 0.5 points
The number of people willing to buy tickets to the Super Bowl is invariably greater than the number of tickets (and seats) available. This is evidence that the price of the tickets is Answer
Selected Answer: a. equal to the equilibrium price since the number of tickets bought equals the number sold.
. Question 9 .0.5 out of 0.5 points
"A reduction in...
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