Question 1. Question : (TCO 1) As a consequence of the condition of scarcity Question 2.

07 Jun Question 1. Question : (TCO 1) As a consequence of the condition of scarcity Question 2.

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Question 1.

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(TCO 1) As a consequence of the condition of scarcity

Question 2.

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(TCO 1) The opportunity cost of constructing a new public highway is the

Question 3.

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(TCO 1) Which situation would most likely cause a nation’s production possibilities curve to shift inward?

Question 4.

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(TCO 1) Which expression is another way of saying “marginal cost”?

Question 5.

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(TCO 1) The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the

Question 6.

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(TCO 1) The Soviet Union economy of the 1980s would best be classified as

Question 7.

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(TCO 1) The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through

Question 8.

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(TCO 1) Laissez-faire capitalism is characterized by

Question 9.

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(TCO 1) Consumer sovereignty and “dollar votes” guide the market system in dealing with which fundamental question?

Question 10.

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(TCO 1) A major problem with state ownership of resources is that it does not

Question 11.

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(TCO 2) An increase in product price will cause:

Question 12.

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(TCO 2) At the point where the demand and supply curves intersect

Question 13.

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(TCO 2) Black markets are associated with

Question 14.

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(TCO 2) An increase in demand for oil along with a simultaneous increase in supply of oil will

Question 15.

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(TCO 2) For most products, purchases tend to fall with decreases in buyers’ incomes. Such products are known as

Question 16.

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(TCO 2) When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is

Question 17.

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(TCO 2) Demand is said to be inelastic when

Question 18.

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(TCO 2) The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that

Question 19.

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(TCO 2) To economists the main differences between “the short run” and “the long run” are that

Question 20.

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(TCO 2) When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition

Question 21.

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(TCO 3) Cash expenditures a firm makes to pay for resources are called

Question 22.

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(TCO 3) Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm earns an accounting profit of

Question 23.

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(TCO 3) The long run is a period of time, or a time frame, in which

Question 24.

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(TCO 3) Fixed costs are those costs which are

Question 25.

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(TCO 3) Marginal cost can be defined as the

Question 26.

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(TCO 3) A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won’t buy it because they don’t like the taste. From an economic pe