Scarcity: condition on having to choose between alternatives, like , for example, deciding wether if to use a land for a shopping

mall or a natural reserve. Choise: Decision made over a scarce good.

Opportunity cost: is the value of the best alternative forgone in making any choice. For example, the opportunity cost of going to college is (apart from the $$ cost) is the time and effort you spend studying instead of spending it in anything else.

Question 1
0 out of 1 points

A tradeoff between two economic goals means that:

Answer Correct Answer:

if you achieve more of one, you will achieve less of the other.

Question 2
1 out of 1 points

Statements that are a hypothesis or statement of fact are:

Answer Correct Answer:

positive.

Question 3
1 out of 1 points

A key theme fundamental to all of economics is:

Answer Correct Answer:

people have unlimited wants facing limited means to satisfy them.

Question 4
1 out of 1 points

Statements that make value judgments are:

Answer Correct Answer:

normative.

Question 5
1 out of 1 points

A scarce resource is one that:

Answer Correct Answer:

has two or more alternative uses.

Question 6
1 out of 1 points

The opportunity cost of going to a movie is:

Answer Correct Answer:

the next best use of the time and the money spent.

Question 7
1 out of 1 points

Macroeconomics deals with:

Answer Correct Answer:

the analysis of the aggregate values in the economy.

Question 8
1 out of 1 points

Microeconomics deals with:

Answer Correct Answer:

individual units in the economy.

Question 9
1 out of 1 points

A simplified representation of a particular problem is a:

Answer Correct Answer:

model.

Question 10
1 out of 1 points

A choice made _______ is a choice whether to do a little more or a little less of something.
Answer Correct Answer:

at the margin

Question 11
1 out of 1 points

The opportunity cost of something is:

Answer Correct Answer:

what is given up to acquire it.

Question 12
1 out of 1 points

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a response to the economic question of:
Answer Correct Answer:

How should goods and services be produced?

Question 13
1 out of 1 points

Ceteris paribus means:

Answer Correct Answer:

all other things unchanged.

Question 14
1 out of 1 points

Ceteris paribus means allowing all things to change.

Answer Correct Answer: False 1 out of 1 points

Question 15

The existence of alternative uses for a resource implies it isn't scarce.

Answer Correct Answer: False 0 out of 1 points

Question 16

An attempt should always be made to maximize opportunity cost.

Answer Correct Answer: False