Which of the following statements is true?

a

The key reason for increasing O.C. is that most resources are better suited to some purposes than to others.

b

If the O.C. was constant, the PPF would be a convex line (This is not "realistic").

c

Graphically, economic growth is shown as a shift to the left of the PPF.

d

All of the above.

e

Only a) and b)

Question 2(1 point)

Which of the following statements is true?

a

Economic phenomena include recessions, inflation, and unemployment.

b

Economics uses the scientific method.

c

A model is a simplification of reality

d

All of the above.

e

Only a) and b)

Question 3(1 point)

Which of the following statements is true?

a

The opportunity cost of producing a good increases as we produce more of the good.

b

In economics, "law" means "empirical regularity", which is something that we observe that happens "very rarely" in real life.

c

When the economy is operating on the PPF (it is being efficient), the only way to get more of one good is to give up some of the other because all resources are already being used.

d

All of the above.

e

Only a) and c)

Question 4(1 point)

Which of the following statements is true?

a

Entrepreneurs are the driving force behind production.

b

Entrepreneurs risk their time, effort, ability and money because not all ideas or new products will be profitable.

c

Examples of entrepreneurs are innovators and risk-taking investors.

d

All of the above.

e

Only a) and b)