1. For economists, opportunity cost is simply the out-of-pocket expenses to buy and use a good or service.

true false

2.Population growth, discovering natural resources, investment in capital, and entrepreneurship are sources of greater production potential.

true false

3. Economic thinking starts with which idea about the world around us? - scarcity

-government rules

-scientific method

- living wage

4. Which of these is NOT listed as one approach to increasing production potential?

• a. Increasing resource supplies
• b. Entrepreneurship
• c. Investment in capital
• d. Consumption of goods and services

5. Governments and corporations organize with hierarchical rules, but they also interact with one another through markets. true false

6. Which of the following are two systems of economic coordination?

• a. Normative vs. positive organization
• b. Government vs. corporations
• c. Micro vs. macro
• d. Hierarchy vs. spontaneous order

7. Millicent Fawcett's economics text was patterned after David Ricardo's Principles text.

• a. True
• b. False

8.Economics as a social science seeks to discover truths about human choices in a world of scarce resources.

• a. True
• b. False

9. Comparative advantage in production recognizes that worker productivities are often different in particular jobs.

• a. True
• b. False

10. Microeconomics examines decisions from which view point?

• a. A sociological perspective
• b. Government commands for all
• c. Global interactions of choices
• d. Individual choices