Because resources are scarce, all economies have three main decisions to make related to the production of goods and services. Which of the following is not one of them? 0 Whether or not to produce 0 What to produce 0 How to produce 0 For whom to produce Question 2 3 pts In January, | signed a year-long. binding contract at a local gym, and I agreed to pay $30 per month in membership fees. I also spent $200 on new gym clothes. Now, I am trying to decide whether or not to actually go to the gym today. Which of the following is relevant to my decision? 0 The $30 that I already paid the gym this month. 0 The $200 I spent on new gym clothes. 0 The fact that I also have to grade midterm exams today. 0 All of the above. Question 3 3 pts Imagine that you have just purchased a used bike for $150. It is a nice bike but it needs a little work. You would like to upgrade the bike by replacing the tires, buying a basket, and painting it. The cost to replace the tires is $40, you value the improvement at $45. The cost to buy a basket is $60, you value the basket at $40. The paintjob will cost $30 [since you have a friend who is willing to help you). You value the paint job at $50. Given this information, if you are using the marginal analysis, would you replace the tires, buy the basket, andfor paint the bike? 0 I would do it all! 0 I would buy the basket and paint the bike since those will make the most dramatic change in the appearance. 0 I won't do anything, since the improvements will cost me almost as much as the bike did! 0 I will replace the tires and paint the bike. Question 4 An incentive: O is the opposite of a tradeoff. 0 could be a reward but could not be a penalty. 0 could be either a reward or a penalty. 0 could be a penalty but could not be a reward Question 5 In the piece "Incentives Matter" by Russ Roberts, how did the government increase the probability that convicts would arrive in Australia alive? 0 They spent more of rst aid supplies and provided those on to each captain. C) The offered the captains a bonus for each living prisoner upon arrival. 0 They had church leaders make a plea to the captains to show more empathy for the convicts. 0 They provided more nutritious food and sanitary conditions. Question 6 Which of the following is a positive statement? 0 The government should provide access to free health care for all Americans. 0 The minimum wage must be increased. 0 Providing governmentsubsidizes health care increases government expenditures. 0 Unemployment is a more serious problem than ination