Question 22 (1 point)

Question 15

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Question 15 options:

a)	society's preferences.

b)	the available production technology.

c)	a fair distribution of the output.

d)	the available demand for the output.

Question 16

A statement describing how the world should be

Question 16 options:

a)	is a normative statement.

b)	is a positive statement.

c)	would only be made by an economist speaking as a scientist.

d)	would only be made by an economist employed by the government.

Question 17

The phenomenon ofscarcitystems from the fact that

Question 17 options:

a)	most economies' production methods are not very good.

b)	in most economies, wealthy people consume disproportionate quantities of goods and services.

c)	governments restrict production of too many goods and services.

d)	resources are limited.

Question 18

Which of the following statements best characterizes a basic difference between market economies and centrally-planned economies?

Question 18 options:

a)	Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.

b)	The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.

c)	Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally-planned economy.

d)	None of the above are correct.

Question 19

Ellie decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is

Question 19 options:

a)	the value of the knowledge she would have received had she attended class.

b)	the $24 she could have earned if she had worked at her job for those two hours.

c)	the value of her nap less the value of attending class.

d)	nothing, since she valued sleep more than attendance at class.

Question 20

Table2-4 Production Possibilities for Batterland

Pancakes	Waffles
600	0
450	150
300	250
150	325
0	375

Refer to Table2-4. What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Question 20 options:

a)	75 waffles

b)	150 waffles

c)	250 waffles

d)	325 waffles

Question 22

When a society cannot produce all the goods and services people wish to have, it is said that the economy is expe-riencing

Question 22 options:

a)

scarcity

b)	surpluses.

c)	inefficiencies.

d)	inequalities.