Question

2 Economic scarcity implies that

people face tradeoffs and when people make choices, other alternatives must be forgone.

people must compete for scarce resources, goods and services.

a rationing mechanism must be used to allocate resources, goods and services.

Economic scarcity implies all of the above statements.

something must be sacrificed to obtain more of something else.

5 The opportunity cost of going to see a movie at a movie theater is the

cost of the movie ticket plus the cost of refreshments (popcorn and soda).

the total monetary cost or value of all alternatives that are sacrificed.

the average monetary cost or value of all alternatives that are sacrificed.

income that the movie-goer could have earned had they been working.

the value of the next best alternative that is sacrificed.

6 When Wanda studies two hours for an economics exam she makes a “C” and when she studies four hours she makes a “B.” If Wanda experiences the law of increasing opportunity cost when studying economics, then she must study a total of _____ hours to make an “A” on an exam.

between four and six.

exactly six.

more than six.

less than six.

at least eight.

7 According to marginal analysis, if Ralph sees a dime lying on the sidewalk, picks it up and puts it in his pocket, then for Ralph the marginal benefit of picking up and having the dime to spend must be

greater than the marginal cost of picking it up.

equal to at least 10¢.

zero

less than the marginal cost of picking it up.

less than 10¢ (= $0.10).

Answer 1

2) economic scarcity is a term to shows that human demand is much higher than Maximum supply.So it implies that to obtain some goods / choice, people have to sacrifice other goods /choices and those choices can't be obtain now.

So first line is right ( people face tradeoffs and when people make choices, other alternatives must be forgone)

5)the opportunity cost is the value of the next best alternative that is sacrificed.{ Definition of opportunity cost}

6) As given opportunity cost is Increasing.

To C to b the Marginal Increase was .

So marginal Increase from B to A will be more than 2

Then required hours =4+more than 2 =more than 6

So required hours is more than 6 to get A

7)IF HE PICKS ,IT means the cost of picking is less than or equal the value of the coin .

If coin is a dime then cost of picking must be lower than or equal to dime.

So correct answer isequal to at least 10¢.