Exam 1: Limits, Alternatives, and Choices

Which statement is an economic rationale for the law of increasing opportunity cost?

If a consumer has an income of $200,the price of X is $5,and the price of Y is $10,the maximum quantity of X the consumer is able to purchase is:

An economic model is:

Which is not considered to be an economic resource?

Refer to the above graph.The shift of the budget line from CD to AB is consistent with:

One major feature of the economic perspective is:

Which question is an example of a microeconomic question?

What is the economic meaning of the expression that "there is no such thing as a free lunch"?

When society overallocates resources to a product it means that the:

Which is considered to be an economic resource by economists?

The macroeconomist would most likely study:

The following economy produces two products. Refer to the above table.According to the production possibilities schedule,a combination of four tanks and 650 autos is:

Which is an illustration of a microeconomic question?

Macroeconomics is concerned with the whole economy or its major sectors.

A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?

The production possibilities table below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. Refer to the table above.What is the opportunity cost of producing the third unit of capital goods?

If the marginal benefits are greater than the marginal cost of an activity,then society is overallocating resources to this activity.

If a product's price falls and the consumer buys 4 units,as they did before the price change,then the:

The law of increasing opportunity cost explains why the shape of the production possibilities curve is:

The study of how a single business firm sets its prices would fall under the study of: