Exam 3: The Fundamental Economic Problem Scarcity and Choice

The term "satisficing" indicates an optimal choice.

Economics is often described as a science of constrained choice.How do you justify this argument?

Figure 3-2 -In Figure 3-2, at point B

Specialization in production

Carefully define the following terms and explain their importance to the study of economics. a.resources b.rational decision c.scarcity d.opportunity cost

Economics is the study of the logic of

A market society will always protect the natural environment.

Both conservatives and liberals tend to approve of markets because

What would be the opportunity cost of a child using a coupon for a free ice cream cone?

The divergence between money costs and opportunity costs will be greatest in which of the following situations?

Opportunity cost can always be measured in money terms.

The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that

Some college students have claimed that because their incomes will be higher as a result of attending college, there is no opportunity cost of attending college.Do you agree? Explain.

Adam Smith noted that people are adept at pursuing their own self-interests, and that ____ harnesses this self-interest remarkably well.

Table 3-1 -Suppose a farmer produces 50 bushels of corn and 10 bushels of peanuts.According to Table 3-1, the opportunity cost of 10 more bushels of peanuts is

Adam Smith noted that people are adept at which of the following?

The major coordination tasks can be summarized with the questions

A production possibilities curve always slopes downward to the right because resources

Although specialization of labor increases efficiency of production, it can lead to another major problem:

If the U.S.government decides to increase military spending, one opportunity cost will be lower spending on education.