Econ Chapter 1

True or False. Scarcity is an economic problem with which all societies are faced.​

• True
• False

True or False.  People’s skills, abilities, health, knowledge, and motivation all add up to entrepreneurship.  

• True
• False

True or False. Economic growth usually can be achieved without investing in new resources.

• True
• False

True or False. Economic growth causes the production possibilities frontier to contract

• True
• False

When a nation’s total output increases over time, the nation is experiencing

• a decrease in gross domestic product.
• economic growth.
• economic interdependence.
• ​an expansion of the possibilities curve.

Societies are faced with which three basic questions about production of goods?

• what, how, and why
• what, where, and when
• what, how, and for whom
• when, where, and for whom

Opportunity cost refers to

• the dollar amount attached to a good or service
• the value of the next best alternative.
• the cost of not expanding production.
• the cost of labor when production is expanded or changed.

Division of labor is practiced because

• companies do not want workers to talk to one another.
• it increases efficiency by ensuring that all  workers become good at every task.
• it increases efficiency by ensuring that workers become good at specific tasks.
• ​it prevents specialization.

Which of the following descriptions best explains the meaning of opportunity cost?​

• ​the initial cost of starting a new business
• the cost of business failure
• ​the cost of choosing one alternative over another
• the risk associated with producing a new item

Consumers are expected to read the full information about a product before making a purchase. This is an example of a consumer’s 

• opportunities.
• rights.
• habits.
• responsibilities.