Question 1

Although finished goods are scarce,the inputs to produce them are not scarce.

Accepted Answer

A) True 
 B)False

Question 2

Money is scarce,but resources are not.

Accepted Answer

A) True 
 B)False

Question 3

Only a market economy must answer the questions of what goods to produce,how to produce them,and for whom to produce them.

Accepted Answer

A) True 
 B)False

Question 4

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

Accepted Answer

A) True 
 B)False

Question 5

Suppose a farmer produces 50 bushels of corn and 10 bushels of peanuts.According to Table 3-1,the opportunity cost of 10 more bushels of peanuts is

Accepted Answer

A)   8 bushels of corn.
B)   42 bushels of corn.
C)   50 bushels of corn.
D)   impossible to determine from the information given.

Question 6

A market system works very well in solving some basic problems of the economy but it fails in some cases.Provide examples.

Accepted Answer

The market deals with efficiency in prod...

Question 7

A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home.The researcher included all costs including the imputed value of time involved to prepare the meal at home.This study illustrates the

Accepted Answer

A)   value of marginal analysis.
B)   law of increasing costs.
C)   difference between real costs and money costs.
D)   cost disease of the service sector.

Question 8

The central question in economics is how to

Accepted Answer

A)   make the best use of scarce resources.
B)   use government planning agencies.
C)   induce people to want less.
D)   increase human knowledge.

Question 9

Firms are encouraged by the profit motive to use inputs efficiently.

Accepted Answer

A) True 
 B)False

Question 10

If you discover that the opportunity cost of raising your economics grade is zero,you

Accepted Answer

A)   are studying too hard and receiving a higher grade than is optimal for you.
B)   must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods.
C)   must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods.
D)   must be producing more of other goods than is optimal for you.

Exam 3: The Fundamental Economic Problem Scarcity and Choice

A market system works very well in solving some basic problems of the economy but it fails in some cases.Provide examples.

Correct Answer
verified
The market deals with efficiency in prod...
View Answer

Firms are encouraged by the profit motive to use inputs efficiently.

Correct Answer
verified

If you discover that the opportunity cost of raising your economics grade is zero,you

Correct Answer
verified

The central question in economics is how to

Correct Answer
verified

Although finished goods are scarce,the inputs to produce them are not scarce.

Correct Answer
verified

A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home.The researcher included all costs including the imputed value of time involved to prepare the meal at home.This study illustrates the

Correct Answer
verified

Money is scarce,but resources are not.

Correct Answer
verified

Only a market economy must answer the questions of what goods to produce,how to produce them,and for whom to produce them.

Correct Answer
verified

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

Correct Answer
verified

Suppose a farmer produces 50 bushels of corn and 10 bushels of peanuts.According to Table 3-1,the opportunity cost of 10 more bushels of peanuts is

Correct Answer
verified

Exam 3: The Fundamental Economic Problem Scarcity and Choice

A market system works very well in solving some basic problems of the economy but it fails in some cases.Provide examples.

Correct AnswerverifiedThe market deals with efficiency in prod...View AnswerShow Answer

Firms are encouraged by the profit motive to use inputs efficiently.

Correct AnswerverifiedShow Answer

If you discover that the opportunity cost of raising your economics grade is zero,you

Correct AnswerverifiedShow Answer

The central question in economics is how to

Correct AnswerverifiedShow Answer

Although finished goods are scarce,the inputs to produce them are not scarce.

Correct AnswerverifiedShow Answer

A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home.The researcher included all costs including the imputed value of time involved to prepare the meal at home.This study illustrates the

Correct AnswerverifiedShow Answer

Money is scarce,but resources are not.

Correct AnswerverifiedShow Answer

Only a market economy must answer the questions of what goods to produce,how to produce them,and for whom to produce them.

Correct AnswerverifiedShow Answer

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

Correct AnswerverifiedShow Answer

Suppose a farmer produces 50 bushels of corn and 10 bushels of peanuts.According to Table 3-1,the opportunity cost of 10 more bushels of peanuts is

Correct AnswerverifiedShow Answer

Correct Answer
verified
The market deals with efficiency in prod...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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