economics 1

Opportunity costs are important mostly because

• individuals should consider the true costs of each alternative when making decisions

• opportunity costs are the main expenditure on most companies' balance sheets

• opportunity costs represent the costs of previous decisions that cannot be reversed

• he costs to society of some activities are greater than the costs to private individuals

A major opportunity cost of going to college is

• the education one receives by attending college classes

• the money that one could have earned by working instead

• the enjoyment one receives from life on a college campus

• the tuition one must pay at the beginning of each semester

The need for individuals to make trade-offs results primarily from

• abundance

• marginal cost

• scarcity

• free enterprise

A basic assumption of economics is that

• wants are unlimited

• means are unlimited

• incentives are irrelevant

• consumers are irrational

The amount of money that could be made by working instead of going to college is best described as

• a sunk cost

• a fixed cost

• an external cost

• an opportunity cost

An opportunity cost is best defined as

• an expenditure that cannot be recovered and is thus irrelevant to rational decision-making

• an economic cost whose value is dependent upon the number of goods produced

• the value of the best alternative use to which a resource, such as land or time, could be put

• an economic cost whose value is independent of the number of goods produced

Scarcity is the situation results from

limited resources and unlimited wants

• true

• false

the situation that results from the gap between wants and resources is known as scarcity

• true

• false

An economy that has both market and command characteristics is best described as a

• free enterprise economy

• dual economy

• mixed economy

• closed economy