micro true false

Economics is the study of how people deal with scarcity

• T
• F

Because wants are unlimited but resources are not, scarcity is a characteristic of all economies.

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• F

The opportunity cost of a choice is the value of the forgone alternative that was not chosen.

• T
• F

 Production possibilities represent the alternative choices of goods that the economy can produce.

• T
• F

PRICE IS DETERMINED BY THE INTERACTION OF SUPPLY AND DEMAND 

• T
• F

INCIDENCE OF TAX ON LUXURY GOODS IS BORNE BY CONSUMERS 

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• F

Goods are scarce because society's desire for them exceeds society's ability to produce them

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• F

Market price is the same thing as equilibrium price

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• F

The demand schedule and demand curve remain unchanged only so long as the underlying determinants of demand remain constant

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• F

When the factory pollutes the air we breathe in the market economy, this situation is known in economics as ,market failure

• T
• F