Questions 1-5

1.Opportunity cost can best be defined as the a. value of what must be given up in order to acquire an item. b. money cost to the buyer to acquire a good or service. c. total value of all the other items that otherwise could be acquired. d. cost to the seller to produce an item. e. time cost to obtain the money to buy an item. 2.Rational choice requires that opportunity cost be a. ignored in making a decision. b. considered for individual choices, but not for societal choices. c. computed, but not actually used in making a decision. d. considered as part of making a decision. e. used as the sole decision criterion. 3.Inputs, or factors of production, include a. labor. b. machinery. c. natural resources. d. all of the above. 4.One popular definition of economics is the study of a. how scarcity increases opportunities to meet ends. b. how markets overcome scarcity. c. one goal and three tasks. d. how to use limited means to meet unlimited wants. e. wants versus needs. 5.Because of scarcity, every economic decision involves a. a trade-off. b. a free good. c. a trade-in. d. an increasing cost. e. a money payment