Bessie spends 2 hours taking a nap instead of taking a class. Her opportunity cost for napping is _.

the value of the knowledge she would have received had she attended class

Which of the following best describes opportunity cost?

The next best alternative foregone when a choice is made

Any point on a country's production possibilities frontier represents a combination of two goods that an economy _.

can produce using all available resources

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Phu Macrounit 1 MCQ

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Questions 11

Answers

1
What is the basic economic problem that arises because resources are limited?
Scarcity
Inflation
Unemployment
Recession
2
In a production possibilities curve (PPC), a point inside the curve indicates:
Economic growth
Efficient use of resources
An impossible level of production
Underutilization of resources
3
Bessie spends 2 hours taking a nap instead of taking a class. Her opportunity cost for napping is _.
the value of her nap minus the value of attending class
the value of the knowledge she would have received had she attended class
nothing, since she valued sleep more than attendance at class
$24 she could have earned if she had worked at her job for those two hours
4
Which of the following best describes opportunity cost?
The time taken to produce a good
The money spent on a good or service
The value of all alternatives rejected
The next best alternative foregone when a choice is made
5
When the number of buyers in the market decreases, the quantity demanded increases at every price.
True
False
6
Out of 10 how would you rate this quiz?
11 / 10
YES / 10
10 / 10
Weezer (Blue) / 10
7
Which of the following is NOT considered a factor of production?
Money
Capital
Labor
Land
8
What type of economy combines elements of both market and command systems?
Mixed economy
Command economy
Free-market economy
Traditional economy
9
Which of the following is not an assumption of the production possibilities frontier?
A country only produces 2 types of goods
Technology does not change
The amount of resources is fixed
The amount of money is fixed
10
Any point on a country's production possibilities frontier represents a combination of two goods that an economy _.
can produce using all available resources
will never be able to produce
may be able to produce in the future with more resources
can produce using some portion, but not all, of its resources
11
Scarcity exists because people have unlimited wants but limited resources.
True
False

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