Question

12) The term that means the highest valued alternative given up when a person chooses to engage in an activity is: 12) A) dollar cost. B) accounting cost. C) opportunity cost. D) explicit cost. 13) Scarcity: 13)_ A) is only a problem when a country has too large a population. B) is not a problem for the wealthy C) is due to unlimited wants and limited resources. D) all of the above 15) If your tuition for this term is S5,000, room and board this term is $3,000, books this term are S500, and you can only work part-time while in school and earn $4,000 rather than $10,000 during the term, then your opportunity costs of college this term is: 15)_ A) S8,500. B) S5,500. C) S14,500. D) S11,500 16) The opportunity cost of going to your economics class: 16) A) is equal to the highest value of an alternative use of the time and money spent on the class B) is zero because there is no admission charged if you are enrolled in the class. C) is the cost of tuition and fees. D) depends on the salary of the instructor 17) If a firm can produce a combination of 60 units of X together with S0 units of Y if it produces 70 units ofX, the firm can only produce 60 units of Y, thus the opportunity cost to produce 10 more units of X is: 17) A) 10 units of X B) one-half a unit of X. C) 20 units of Y.D) two units of Y 18) If the production possibilities frontier is graphed as a straight line, then 18) A) opportunity costs are decreasing as production shifts from one product to the other B) opportunity costs are increasing as production shifts from one product to the other C) it is easy to efficiently produce output. D) opportunity costs are constant as production shifts from one product to the other 19) At full employment, an economy that wants to produce more war goods: 19) must be attempting the impossible. B) must wait until resource supplies have increased. C) must increase the production of consumer goods. D) must cut back on the production of other goods. 20) 21) If society decides it wants more of one good and there is some unemployment: 21) A) it can achieve this without giving up another good by employing more resources. B) it is trying to do the impossible unless technology advances. C) it will have to give up production and consumption of some other good. D) it will have to increase resource supplies. 23) Demand shows: 23) A) the quantities of a good that sellers will sell at all possible prices. B) the quantity of a good that buyers will buy at a given price C) the quantity of a good that sellers will sell at a given price D) the quantities of a good that buyers will buy at all possible prices.

Answer 1