Exam 3: The Fundamental Economic Problem: Scarcity and Choice

Which of the following ideas of Adam Smith has religious overtones?

In order to make an optimal choice we must use

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

Although all points on the PPF are efficient,that alone does not tell us which point is "best" for the society.

As a general rule,an increase in the capital available to a society

The notion of opportunity cost can be represented graphically by the

Which of the following is an example of opportunity cost not measured by money cost?

A large government faces a production possibilities frontier much like a business firm does.

Waiting in line to get a free ticket does not involve any opportunity cost.

A production possibilities frontier shows the combinations of various goods that should be produced.