The study of economics is primarily concerned with:
- keeping private businesses from losing money.
- demonstrating that capitalistic economies are superior to socialistic economies.
- choices which are made in seeking to use scarce resources efficiently.
- determining the most equitable distribution of society's output.
The "economic perspective" entails
- rational behavior by individuals and institutions.
- a comparison of marginal benefits and marginal costs in decision making.
- the altering of behavior when marginal benefits and marginal costs change.
- all of the above.
You should go to a movie
- if the maginal cost of the movie exceeds its marginal benefit.
- if the marginal benefit of the movie exceeds its marginal cost.
- if your income will allow you to but a ticket.
- because movies are inherently good products.
Even though local newspapers are very inexpensive, people tarely buy more than one of them each day. This fact:
- is an example of irrational behavior.
- implies that reading should be taught through phonics and isn't stressed in modern schools.
- contradicts the economic perspective.
- implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.
The scarcity problem:
- persists only because countries have failed to achieve continuous full employment.
- persists because material wants exceed available productive resources.
- has been solved in all industrialized nations.
- has ben eliminated in affluent societies such as the United States.
Economics is primarily the study of:
- why resources are scarce.
- how advertising and sales promotion shape consumer wants.
- how to make profitable investments.
- how to use scarce resources efficiently.
The money payments made to owners of land, labor, capital, and entrepreneurial ability are:
- interest, wages, rent, and profits.
- rent, wages, dividends, and interest.
- rent, profits, wages, and interest.
- rent, wages , interest, and profits.
- rent, wages, profit, and interest.
Opportunity costs is best defined as:
- the montary price of any productive resource.
- the amount of labor which must be used to produce one unit of any product.
- the ratio of the prices of imported goods to the prices of exported goods.
- the amount of one product which must be given up to produce one more unit of another product.
Allocative efficiency involves determining:
- which output-mix will result in the most rapid rate of economic growth.
- which production possibilities curve entails the minimization of opportunity costs.
- the point on the produciton possibilities curve which will maximize society's satisfaction..
- the optimal rate of technological progress.
The basic difference between consumer goods and capital goods is that
- consumer goods are produced in the private sector and capital goods are produced in the public sector.
- an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
- the production of capital goods is not subject to the law of increasing opportunity costs.
- consumer goods satisfy wants directly while capital goods satisfy wants indirectly.