Which of the following statements aout scarcity is true?
-Scarcity refers to the situation in which unlimted wants exceed limited resources
-Scarcity is not a problem for wealthy people
-Scarcity is only a problem when a country has too lare a population
-Scarcity only arises when there is a...
Which of the following statements aout scarcity is true?
-Scarcity refers to the situation in which unlimted wants exceed limited resources
-Scarcity is not a problem for wealthy people
-Scarcity is only a problem when a country has too lare a population
-Scarcity only arises when there is a wide disparity in income distribution correct answersscarcity refers
to the situation in which unlimited wants exceed limited resources
Suppose that some investors have decided that economic and financial incertanty have made the
prospect of innvesting in domestic stock marktes more risky than investing in foreign stock markets, and
therefore choose to invest in foreign marktes. By using all available information as they act to achieve
their goals, These investors are exemplifying the economic idea that...
-People are rational
-People respond to economic incentives
-Optimal decisions are made at the margin
-Equity is more important than efficiency correct answersPeople are rational
Allisons auto art is a company that applies pinstripes to vehicles. Allisons cost for a basic 1-color pin
striping job is $35, and she charges $95 for this service. For a totl price of $175, allison will apply a
fancier 3-color pinstripe application to an automobile, a sevie that adds an additional $40 to the total
cost of the package. what is allisons marinal benefit if she sells a basic 1 color job
-35
-60
-95
-Cant BE DETERMED correct answers95
If the best surgeron in town is the best at cleaning swimming pools, the according to economic
reasoning, this person should
- Pursue an activity that he enjoys more
, -Specialize in cleaning swimming pools because it is more labor intensive
-Split his time evenly between cleaning pools and being a surgeon
-Specialize in being a surgeon because his opportunity cost is lower correct answersSpecialize in being a
surgeon because is opportunity cost is lower
Lionels lawn car is a company that maintains residential yards. Lionels cost for his standard package of
mowing, edging, and trimmming is $15, and he charges %25 for this service. For a total price of $40,
Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard
package. What is Lionels marginal cost of adding the shrub trimming service to the standard package
-10
-15
-25
-40 correct answers10
Arlene quits her $125000 a year job to take care of her ailing parents what is the opertunity cost of her
decision
- Zero, since she will no longer be earning a salery
- it depends on the going rate for home car providers
-at least $125000
-The value she attributes to the satisfaction she recieves from taking care of her parents correct
answersat least 125000
Product efficiency is achieved when
-Firms add a low profit margin to the goods and services they produce
-Firms produce the goods and services that customers value the most
-firms produce goods and services at the lowest cost
-There are no shortages or surpluses in the market correct answersFirms produce goods and services at
the lowest cost
The principle of opportunity cost is that
-In a market economy, taking advantage of profitable opportunities involves some money cost
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