scarcity, trade-offs, opportunity cost

economic models are based on

• scarcity

• positive statements

• basic assumptions

• resources

The opportunity cost of a good is

• its price in dollars and cents.

• the alternative goods forgone.

• the price of alternative goods foregone.

• none of the other options

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

macroeconomics is involved with the

• economy in agregate

• free market

• individual allocations of scarce resources

• consumer and supplier

economic models are

• based on assumptions

• subjective and never conclusive

• simplified

• valuable

• complex

if a point falls in the interior of a ppc, there is a(n)

• decreasing opportunity cost

• economic growth

• boom of resources

• recession

which of the following are scarce resources?

• sunlight

• land

• labor

• air

• clean water

what is the term for giving up goods to obtain another?

• trade-offs

• opportunity costs

economics is based on the

• market and free trade concepts

• allocation of scarce resources

• study of the stock market

• transfer of money

a decreasing opportunity cost is

• 
• 
•