Term
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Definition
a. scarce for households but plentiful for economies.
b. plentiful for households but scare for economies.
c. scarce for house holds and scarce for economies.
d. plentiful for households and plentiful for economies |
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Term
| The phenomenon of scarcity stems from the fact that |
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Definition
a. most economies' production methods are not very good.
b. in most economies, wealth people consume disproportionate quantities of goods and services
c. governments restrict production of too many goods and services
d. resources are limited. |
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Term
Which of the following products would be considered scarce?
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Definition
a. automobiles
b. baseballs autographed by Babe Ruth
c. pickles
d. All the above |
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Term
| The adage, "there is no such thing as a free lunch," means |
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Definition
a. even people on welfare have to pay for food.
b. the cost of living is always increasing
c. people face tradeoffs
d. all costs are included in the price of the product |
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Term
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Definition
a. society is conserving resources in order to save them for the future
b. society's goods and services are distributed equally among society's members
c. society's goods and services are distributed fairly, though not necessarily equally, among society's members
d. society is getting the maximum benefits from its scarce resources.
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Term
The opportunity cost of an item is
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Definition
a. the number of hours needed to earn money t o buy the item.
b. what you give up to get that item.
c. usually less than the dollar value of the item.
d. the dollar value of the item. |
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Term
| High-school athletes who skip college to become pro's athletes |
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Definition
a. obviously do not understand the value of a college education
b. usually do so because they cannot get into college.
c. understand that the opportunity cost of attending college is very high
d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high school athletes. |
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