CPA200 Week 1

4 Resource categories we studied today are:

• Land, Labor, Capital and Entrepreneurial Ability

• Labor, Physical Capital, Paper Money and Entrepreneurial Ability

• Land, Labor, Consumer Products and Equipment

• Land, Capital, Government Financing and Salary

When Marginal Benefit exceeds Marginal Cost, we produce more.

• True

• False

Ability to produce a good at a lower opportunity cost than another producer is called

• Scarcity

• Comparative Advantage

• Production Benefit

• Utility Maximization

Consumers want to ______ their total utility given their _____

• Maximize, Preferences

• Minimize, Preferences

• Maximize, Budget

• Minimize, Budget

Economics is the study of

• consumers, their choices and scarce resources

• scarce resources and trade

• individual preferences and budget lines

• government economic decisions