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A. Scarcity implies that choices have to be made; when people make choices they incur costs.
B. When people make choices, they incur costs, which creates scarcity.
C. Because people incur costs, they will make choices, which leads to scarcity.
d. Scarcity implies that costs will be made and choices regretted.
A. consistent with
B. inconsistent with
C. the same as making
D. conditioned upon making
A. make their analyses easier for them to conduct.
b. designate what they believe is the correct relationship between two variables.
c. explain why people sometimes consume more of a good when its price rises.
D. explain why those things that come first do not necessarily cause those things that come later.
A. be believed, because the evidence supports what he says.
B. not be believed, because he has committed the fallacy of composition.
C. not be believed, because he has assumed that association is causation, and this is not necessarily true.
D. not be believed, because while he says the data support his contention, he hasn’t cited the source of the data.
A. We should raise the minimum wage in order to provide a decent wage for more people.
B. Consumers bought fewer cars when the relative price of cars increased.
c. The budget deficit has been declining in recent years.
d. b and c
a. surfing the Internet is the opportunity cost of having dinner with your friends.
B. the price of having dinner with your friends is more than the price you would have had to pay to surf the Internet.
C. the opportunity cost of having dinner with your friends is lower than the opportunity cost of surfing the Internet.
D. it is less costly to surf the Internet than to have dinner with your friends.
a. “nothing else changes.”
B. “in my opinion.”
C. “it is proved.”
D. “under this assumption.”
A. opportunity costs are incurred whenever a choice is made.
B. association is not necessarily causation.
C. the fallacy of composition is responsible for many errors in economic thinking.
D. food is very expensive these days because of inflation.
c. positive economics.
D. normative economics.
A. Economic theories cannot be tested.
B. Economic theories do not need to be tested.
C. Economic theories are abstractions from reality.
D. Economic theories are always true in the real world.