1. A basis for the systematic study of economics exists because A Resources are scarce in relation to material wants. B Governments interfere because there is always an efficient allocation of scarce resources. C ndividual economic actors never make rational economic decisions. D Resources are plentiful relative to wants, therefore an allocation problem arises. E The market consistently fails to allocate resources efficiently, thereby establishing the need to study economics. 2. The law of increasing opportunity cost is reflected in the shape of the A Production possibilities curve concave to the origin. B Production possibilities curve convex to the origin. C Horizontal production possibilities curve. D Straight- line production possibilities curve. E Upward-sloping production possibilities curve. 3. A production possibility frontier shows A The maximum combination of inputs that can be used to produce output in a typical economy. B The maximum revenue that can be generated from the sale of output produced by limited resources in an economy. C The minimum quantities of commodities that can be produced from limited but fully-employed resources in an economy. D The maximum quantities of commodities that can be produced from limited but fully-employed resources in an economy. E The quantities of factors of production available to produce goods and services in an economy.
1. A basis for the systematic study of economics exists because A Resources are scarce in relation to material wants. B Governments interfere because there is always an efficient allocation of scarce resources. C ndividual economic actors never make rational economic decisions. D Resources are plentiful relative to wants, therefore an allocation problem arises. E The market consistently fails to allocate resources efficiently, thereby establishing the need to study economics. 2. The law of increasing opportunity cost is reflected in the shape of the A Production possibilities curve concave to the origin. B Production possibilities curve convex to the origin. C Horizontal production possibilities curve. D Straight- line production possibilities curve. E Upward-sloping production possibilities curve. 3. A production possibility frontier shows A The maximum combination of inputs that can be used to produce output in a typical economy. B The maximum revenue that can be generated from the sale of output produced by limited resources in an economy. C The minimum quantities of commodities that can be produced from limited but fully-employed resources in an economy. D The maximum quantities of commodities that can be produced from limited but fully-employed resources in an economy. E The quantities of factors of production available to produce goods and services in an economy.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. A basis for the systematic study of economics exists because
A Resources are scarce in relation to material wants.
B Governments interfere because there is always an efficient allocation of scarce resources.
C Individual economic actors never make rational economic decisions.
D Resources are plentiful relative to wants, therefore an allocation problem arises.
E The market consistently fails to allocate resources efficiently, thereby establishing the need to study economics.
2. The law of increasing opportunity cost is reflected in the shape of the
A Production possibilities curve concave to the origin.
B Production possibilities curve convex to the origin.
C Horizontal production possibilities curve.
D Straight-line production possibilities curve.
E Upward-sloping production possibilities curve.
3. A production possibility frontier shows
A The maximum combination of inputs that can be used to produce output in a typical economy.
B The maximum revenue that can be generated from the sale of output produced by
limited resources in an economy.
C The minimum quantities of commodities that can be produced from limited but fully-employed resources in an
economy.
D The maximum quantities of commodities that can be produced from limited but fully-employed resources in an
economy.
E The quantities of factors of production available to produce goods and services in an economy.
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