Economics
Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the weekend does not.
false
An economic model is an ideal or utopian type of economy that society should strive to obtain through economic policy
false
An economy cannot produce at a point outside of its production possibilities curve because human economic wants are insatiable.
false
Because economic generalizations are simplifications from reality, they are impractical and useless
false
Certain inherently desirable products such as education and health care should be produced so long as resources are available
false
If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing the exact magnitudes of the demand and supply changes.
false
Surpluses drive market prices up; shortages drive them down.
false
a decrease in supply of X increases the equilibrium price of X, which reduces the demand for X and automatically returns the price of X to its initial level
false
an increase in quantity supplied might be caused by an increase in production costs
false
normative statements are expressions of fact
false
positive statements are expressions of value judgements
false
supply refers to the amount of a product that a producer will offer in the market at some particular price
false
Choices entail marginal costs because resources are scarce
true
If demand increases and supply simultaneously decreases, equilibrium price will rise.
true
Rational individuals may make different choices because their preferences and circumstances differ.
true
a government tax per unit of output reduces supply
true
an increase in demand acompainied by an increase in supply will increase the equilbrium quantity but the effect on equilibrium price will be indeterminate
true
marginal analysis means that decision-makers compare the extra benefits with the extra costs of a specific choice.
true
products and services are scarce because resources are scarce
true
the production possibilites curve shows various combinations of two products that an economy can produce when achieving full employment
true