Exam 3: The Fundamental Economic Problem: Scarcity and Choice

High opportunity costs go hand in hand with high money costs in a properly functioning economy.

Scarcity is the fundamental problem of the economy.

If a market system is functioning well,we can conclude that goods with

The most important way in which inefficiency occurs is

Figure 3-7 -What is the opportunity cost of moving from point B to point A in Figure 3-7?

A principle that economists emphasize is that the ____ of decision makers are always limited.

Opportunity cost is best defined as the value of

The problem of scarcity

Although finished goods are scarce,the inputs to produce them are not scarce.

The divergence between money costs and opportunity costs is the least in which of the following situations?

What are the three coordination tasks which markets resolve?

Do markets solve all of society's problems?

Is faster economic growth unambiguously better?

If an economy is operating inefficiently,then

A society which is inside its production possibilities frontier is efficient.

The tendency of opportunity cost to increase as production increases

Figure 3-2 -In Figure 3-2,a point such as D

Which principle states that as the production of one good expands,the opportunity cost of producing another unit of this good generally increases?

The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn

If a farmer's opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans,then her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.