Chapter 1 Section 2 Quiz (opportunity Cost)
8 Questions
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These questions are from Chapter 1 Section 2.
Questions and Answers
- 1.The economic concept of guns or butter means that
- A.
A government must decide whether to produce more or less military or consumer goods
- B.
A government can buy unlimited military and civilian goods if it is rich enough
- 2.If a person who wants to buy a CD has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the
- A.
Trade-off
- B.
Opportunity cost
- 3.A decision-making grid is a visual way of
- A.
Examining opportunity costs
- B.
Selling goods and services
- 4.Making decisions at the margin is possible only in situations where
- A.
The available opportunity costs are unclear or complicated
- B.
The available alternatives can be divided into increments
- 5.Every decision involves trade-offs because
- A.
Everyone has to make decisions
- B.
Everyone's resources are limited
- 6.All of the following are trade-offs for a student who spends a semester abroad EXCEPT
- A.
Experiencing the culture of another country
- B.
Missing family activities at home
- 7.A decision that is made at the margin when each alternative considers
- A.
What the "all or nothing" alternative will be
- B.
Cost and benefit ranked in progressive units
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