Normal cost of living expenses, such as room and board, are included in the opportunity cost of attending college. red O a. True out of O b. False g question 12 The concept of guns vs. butter represents the classic societal trade-off between spending on red O a. imports vs, exports. out of O b. health care vs. agriculture. g question O c. goods vs, services, O d. military goods vs. consumer goods. The main reason households and societies must make many decisions is because O a. incomes fluctuate with business cycles. out of O b. people, by nature, tend to disagree. g question O c. goods and services are unlimited. O d. resources are scarce. Productivity is not important in economics. O a. False out of O b. True question Adam Smith's 'invisible hand' refers to: ed O a. the control that large firms have over the economy. out o O b. how governments allocate economic resources. question O c. how households and firms, acting in their own self-interest, manage to make everyone better off. O d. how central planners made economic decisions.Efficiency means our economic pie is divided into equal slices. red O a. False out of O b. True g question in 7 Economics is the study of the choices people make in attempting to manage their scarce resources. ered O a. False Out D O b. True g question 1 8 In the market for bread, supply is determined by: red O a. the government. out of O b. the buyers of bread. g question O c. both the buyers and sellers of bread. O d. the sellers of bread. Which of the following changes would not shift the demand curve for gas? O a. The price of gas decreases due to increased production. out of O b. Senior citizens' incomes increase due to a change in social security benefits. g question O c. The price of gas is expected to increase in near future due to decreased production. O d. The price of gas-powered cars increases due to higher steel prices. on 10 A group of pizza buyers and pizza sellers forms a(n) ered O a. market. s out of O b. demand. g question O G. economy. O d. supply.ation 11 A very snowy winter in Boston will cause yet wered O a. the price of ice melt to decrease. its out of O b. the demand for plow services to shift to the left. lag question O c. a movement upward and to the left along the demand curve for shovels. O d. the demand curve for snow blowers to shift to the right. ation 12 Refer to the Figure. yet wered Price Price its out of 18 Consumer A Consumer B 16 16 14 14 lag question 12 12 10 8 10 12 14 16 Quantity 4 16 Quantity If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $6 is O a. 16 units. O b. 10 units. O c. 2 units. O d. 12 units. stion 13 Which of the following events must cause the equilibrium quantity to rise in the market for burritos? vet wered a. A new study shows eating burritos prevents cancer and there are fewer burrito sellers in the market. its out of O b. A new study shows eating burritos causes cancer and a new labor-saving technology is created for making burritos. lag question O c. Consumer incomes increase, assuming burritos are an inferior good, and the prices of rice and beans increase. O d. The price of pizza increases and the price of tortillas decreases
