Microeconomics Ch 1

The economizing problem is: A. the need to make choices because economic wants exceed economic means. B.how to distribute resources equally among all members of society. C.that people's means often exceed their wants. D.that people do not know how to rationally allocate resources.

A. The need to make choices because economic wants exceed economic means

In moving along a given budget line: A. the prices of both products and money income are assumed to be constant. B.each point on the line will be equally satisfactory to consumers. C.money income varies, but the prices of the two goods are constant. D. the prices of both products are assumed to vary, but money income is constant.

A. The prices of both products and money income are assumed to be constant

Which of the following is NOT a main function of the entrepreneur A. to make routine pricing decisions B to innovate C.to assume the risk of economic losses D. to make strategic business decisions

A. To make routine pricing decisions

Which of the following closely relates to the idea of opportunity costs? A.marginal cost. B.rational outcome. C.status fulfillment. D. utility.

A. Trade-Offs

Refer to the budget line. The absolute value of the slope of the budget line is: A. two. B.one-half. C.five. D.ten.

A. Two

Which of the following is a labor resource A. a computer programmer B.a computer C.silicon (sand) used to make computer chips D.software used by a firm

A. a computer programmer

The basic purpose of the other-things-eaul assumptions is to A. allow one to reason about the relationship between variables X and Y without the intrusion of variable Z. B.allow one to focus upon micro variables by ignoring macro variables. C.allow one to focus upon macro variables by ignoring micro variables. D.determine whether X causes Y or vice versa.

A. allow one to reason about the relationship between variables X and Y without the intrusion of variable Z.

According to economists, economic self-interest A. is a reality that underlies economic behavior. B. has the same meaning as selfishness. C. means that people never make wrong decisions. D. is usually self-defeating.

A. is a reality that underlies economic behavior.

Suppose you have a money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn, respectively, are A. $.50 and $1.00. B. $1.00 and $.50. C. $1.00 and $2.00. D. $.40 and $.50.

A. $.50 and $1.00

Refer to the budget line shown in the diagram. Which of the following combinations of goods is unattainable for this consumer? A. 4 units of C and 6 units of D B.5 units of C and no units of D C.1 unit of C and 8 units of D D.2 units of C and 6 units of D

A. 4 untis of C and 6 units of D

A person should consume more of something when its marginal A. benefit exceeds its marginal cost. B.cost exceeds its marginal benefit. C.cost equals its marginal benefit. D.benefit is still better.

A. Benefit exceeds the marginal cost

Which of the following terms implies the LEAST degree of confidence in an economic generalization? A. Hypothesis B. Theory C. Principle D. Law

A. Hypothesis

When economists say that people act rationally in their self-interest, they mean that individuals A. look for and pursue opportunities to increase their utility. B. generally disregard the interests of others. C. are mainly creatures of habit. D. are usually impulsive and unpredictable.

A. Look for and pursue opportunities to increase their utility

The issues of inflation, unemployment, and business cycles are A. major topics of macroeconomics. B.not relevant to the U.S. economy. C.the primary focus of microeconomics. D.positive economic issues, but not normative issues.

A. Major topics of macroeconomics

In constructing models, economists A. make simplifying assumptions. B.include all available information. C.must use mathematical equations. D.attempt to duplicate the real world

A. Make simplifying assumptions

Which of the following statements is true? A. Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole. B. Macroeconomics focuses on specific decision-making units of the economy; microeconomics examines the economy as a whole. C. Every topic in economics is either a microeconomic or a macroeconomic issue; a topic cannot be both. D. Topics in microeconomics have public policy implications; topics in macroeconomics do not.

A.Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole.

Which of the following is NOT considered by economists to be and economic resource A. money B.factory workers C.computers at a retail store. D.a forest

A. Money

Money isn't and economic resource because A. money, as such, does not produce anything. B.idle money balances do not earn interest income. C.it is not scarce. D.money is not a free gift of nature

A. Money, as such, does not produce anything

Economies involves marginal analysis because A. most decisions involve changes from the present situation. B.marginal benefits always exceed marginal costs. C.marginal costs always exceed marginal benefits. D.much economic behavior is irrational.

A. Most decisions involve changes from the present situation

1. Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of A. opportunity costs. B.marginal benefits that exceed marginal costs. C.imperfect information. D.normative economics.

A. Opportunity Cost

"Macroeconomics is the part of economics concerned with individual units, such as a person, a household, a firm, or an industry." This statement is A. positive but incorrect. B.positive and correct. C.normative but incorrect. D.normative and correct.

A. Positive but correct

A production possibilities curve illustrates A. scarcity. B.market prices. C.consumer preferences. D.the distribution of income.

A. Scarcity

In deciding whether to study for an economic quiz or go to a concert, one is confronted by the idea of A. scarcity and opportunity costs. B.money and real capital. C.complementary economic goals. D.full production.

A. Scarcity and opportunity costs

An increase in money income A. shifts the consumer's budget line to the right. B.shifts the consumer's budget line to the left. C.increases the slope of the budget line. D.has no effect on the budget line.

A. Shifts the consumer's budget line to the right

The assertion that "there is no free lunch" means that A. there are always trade-offs between economic goals. B. all production involves the use of scarce resources and thus the sacrifice of alternative goods. C. marginal analysis is used in economic reasoning. D. choices need not be made if behavior is rational.

B. all production involves the use of scarce resources and thus the sacrifice of alternative goods.

Which of the following is associated with macroeconomics? A. an examination of the incomes of professional athletes B. an empirical investigation of the general price level and unemployment rates since 1990 C.a study of the trend of pecan prices since the Second World War D.a case study of pricing and production in the textbook industry

B. an empirical investigation of the general price level and unemployment rates since 1990

Kara was out jogging and, despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara A. must be an avid runner. B. decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile. C. decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile. D. was not very tired, so the marginal cost of the extra mile was very low.

B. decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile.

Rosa works at a gelato shop and observes that the number of people buying gelato varies greatly from day to day. For a couple of weeks, she has recorded the number of people at the shop each day, as well as the daily temperature, and has observed a positive relationship between temperature and the number of customers. Based on her observations, Rosa should A. conclude definitively that people buy more gelato when the temperature rises. B. determine if there are other relevant factors and attempt to hold these constant before drawing conclusions. C.continue to gather data on the number of visitors and daily temperatures, because eventually other relevant variables will not matter. D.throw out the data if it does not show a perfect relationship between buying habits and temperature.

B. determine if there are other relevant factors and attempt to hold these constant before drawing conclusions.

The slope of the budget line reflects the A. desirability of the two products. B. price ratio of the two products. C.amount of the consumer's income. D.utility ratio of the two products.

B. price ratio of the two products

Economics may best be defined as the A. interaction between macro and micro considerations. B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. C.empirical testing of value judgments through the use of logic. D.study of why people are rational.

B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity

You should decide to go to a movie IF A. if the marginal cost of the movie exceeds its marginal benefit. B. if the marginal benefit of the movie exceeds its marginal cost. C.if your income will allow you to buy a ticket. D.because movies are enjoyable.

B. the marginal benefit of the movie exceeds its marginal costs

Camille is at the candy store with Grandma Mary, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's Grandma Mary buy her? A. six lollipops and three candy bars B. two lollipops and two candy bars C.three lollipops and two candy bars D.one lollipop and three candy bars

B. two lollipops and two candy bars

Which one of the following expressions best states the idea of opportunity cost? A. "A penny saved is a penny earned." B. "He who hesitates is lost." C. "There is no such thing as a free lunch." D. "All that glitters is not gold."

C. "there is no such thing as free lunch"

The shift of the budget line from cd to ab in the figure is consistent with A.decreases in the prices of both M and N. B.an increase in the price of M and a decrease in the price of N. C. a decrease in money income. D. an increase in money income.

C. A decrease in money income

A well-tested economic theory is often called A. Hypothesis B. A Prototype C. A Principle D. An Anomaly

C. A principle

The study of economics is primarily concerned with A. keeping private businesses from losing money. B.demonstrating that capitalistic economies are superior to socialistic economies. C. choices that are made in seeking the best use of resources. D. determining the most equitable distribution of society's output

C. Choices that are made in seeking the best use of resources

Purposeful behavior suggests that A.everyone will make identical choices. B.resource availability exceeds economic wants. C. individuals may make different choices because of different desired outcomes. D. an individual's economic goals cannot involve trade-offs.

C. Individuals may make different choices because of different desired outcomes

The process of producing and accumulating capital goods is called A.money capital. B.depreciation. C. investment. D. consumption.

C. Investment

An economic hypothesis A.has the same meaning as an economic principle or economic law. B.is usually a normative statement. C. is a possible explanation of cause and effect. D. is a stronger generalization than an economic law.

C. Is a possible explanation of cause and effect

Which of the following statements pertains to macroeconomics? A.Because the minimum wage was raised, Mrs. Olsen decided to enter the labor force. B.A decline in the price of soybeans caused farmer Wanek to plant more wheat. C. National income grew by 2.7 percent last year. D. The Pumpkin Center State Bank increased its interest rate on consumer loans by 1 percentage point.

C. National income grew by 2.7%

The latin term "ceteris paribus" A.that if event A precedes event B, A has caused B. B.that economics deals with facts, not values. C. other things equal. D. prosperity inevitably follows recession.

C. Other things equal

For economists, the word "utility" means A.versatility and flexibility. B.rationality. C. pleasure or satisfaction. D. purposefulness.

C. Pleasure or satisfaction

Which of the following is a microeconomic statement? A.The real domestic output increased by 1.6 percent last year. B.Unemployment was 5.2 percent of the labor force last year. C. The price of smartphones declined 2.8 percent last year. D. The general price level increased by 1.1 percent last year.

C. The price of smartphones declined 2.8 percent last year.

Which of the following is a positive statement? A.A humidity level of 90 percent is too high. B.It is too hot to run outside when the temperature exceeds 80 degrees. C. The temperature is 92 degrees today. D. Summer evenings are nice when it cools off to around 70 degrees.

C. The temperature is 92 degrees today.

Which of he following terms implies the GREATEST degree of confidence in and economic generalization? A. Hypothesis B. Comparison C. Theory D. Anomaly

C. Theory

A positive statement is concerned primarily with A.some goal that is desirable to society. B.what should be. C. what is. D. the formulation of economic policy.

C. What is

The term "other things equal" means that A.the associated statement is normative. B.many variables affect the variable under consideration. C. a number of relevant variables are assumed to be constant. D. when variable X increases, so does related variable Y.

C. a number of relevant variables are assumed to be constant.

Economic theories are: A.are useless because they are not based on laboratory experimentation. B.that are true for individual economic units are never true for the economy as a whole. C. are generalizations based on hypotheses tested and supported with observed facts. D. are abstractions and therefore of no application to real situations.

C. are generalizations based on hypotheses tested and supported with observed facts.

78. Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia A.should only buy muffins. B.should only buy lattes. C. can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods. D. can buy 5 lattes and 10 muffins with her $20 gift card.

C. can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods.

The production possibilities curve illustrates the basic principle that A.the production of more of any one good will in time require smaller and smaller sacrifices of other goods. B.an economy will automatically obtain full employment of its resources. C. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. D. an economy's capacity to produce increases in proportion to its population size.

C. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

Which of the following would not be classified as an economic resource by economists? A.a professional soccer player B.water in a town's reservoir C. money in a business checking account D. the manager of the local hamburger restaurant

C. money in a business checking account

A production possibilities curve shows A.that resources are unlimited. B.that people prefer one of the goods more than the other. C. the maximum amounts of two goods that can be produced, assuming the full use of available resources. D. combinations of capital and labor necessary to produce specific levels of output.

C. the maximum amounts of two goods that can be produced, assuming the full use of available resources.

Kelly works at an ice cream shop and observes that the number of people buying ice cream varies greatly from day to day. For a couple of weeks, she has recorded the number of people at the shop each day, as well as the daily temperature. If Kelly is using the scientific method to better understand ice cream buying habits, her next step is to A.conclude definitively that people buy more ice cream when the temperature rises. B.state her findings as a well-tested economic principle. C. use the observed data to form a hypothesis about ice cream buying behavior. D. throw out the data if it does not show a perfect relationship between buying habits and the other information she has collected

C. use the observed data to form a hypothesis about ice cream buying behavior.

The alternative combination of two goods that a consumer can purchase with a specific money income is shown by A.a production possibilities curve. B.a demand curve. C.a consumer expenditure line. D. a budget line.

D. A budget line

Suppose Elroy's budget line is as shown on the diagram. If his tastes change in favor of Coke and against popcorn, the budget line will A.become steeper. B.become flatter. C.shift rightward. D. be unaffected.

D. Be unaffected

Economic resources are also called A.free gifts of nature. B.consumption goods. C.units of money capital. D. factors of production

D. Factors of production

A Positive statement is one that A.is derived by induction. B.is derived by deduction. C.focuses on the best course of action and is based on value judgments. D. focuses on facts, descriptions, and theoretical relationships.

D. Focuses on facts, descriptions and theoretical relationships

Refer to the graphs. Assume that pizza is measured in slices and beer in pints. In which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza? A.graph A B.graph B C.graph C D. graph D

D. Graph D

A normative statement is one that A. is based on the law of averages. B. applies only to microeconomics. C. applies only to macroeconomics. D. is based on value judgments.

D. Is based on value judgements

Which of the following is a land resource? A.a farmer B.an oil drilling rig C.a machine for detecting earthquakes D. natural gas

D. Natural gas

Refer to the budget line shown in the diagram. If the consumer's money income is $50, the A.prices of C and D cannot be determined. B.price of C is $5 and the price of D is $10. C.consumer can obtain a combination of 5 units of both C and D. D. price of C is $10 and the price of D is $5.

D. Price of C is $10 and the price of D is $5

Which of the following is a capital resource? A.a computer programmer B.a corporate bond issued by a computer manufacturer C.silicon (sand) used to make computer chips D. software used by a firm

D. Software used by a firm

If someone produced too little of a good, this would suggest that A.rational choice cannot be applied to many economic decisions. B.the good was produced past the point where its marginal cost exceeded its marginal benefit. C.government should intervene to produce more of the good. D. the good was produced to the point where its marginal benefit exceeded its marginal cost.

D. The good was produced to the point when its marginal benefit exceeded its marginal cost.

In economics, the pleasure, happiness, or satisfaction received from a product is called A.marginal cost. B.rational outcome. C.status fulfillment. D. utility.

D. Utility

Which of the following lists includes only capital resources (and therefore no labor or land resources)? A.an ice arena, a professional hockey player, hockey uniforms B.the owner of a new start-up firm, a chemistry lab, a researcher C.a hydroelectric dam, water behind the dam, power lines D. autos owned by a car rental firm, computers at the car rental agency, vans used to shuttle rental customers to and from the airport

D. autos owned by a car rental firm, computers at the car rental agency, vans used to shuttle rental customers to and from the airport

Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact A. is an example of irrational behavior. B. implies that electronic media sources are displacing print sources for many consumers. C. contradicts the economic perspective. D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

Unemployment A.causes the production possibilities curve to shift outward. B.can exist at any point on a production possibilities curve. C.is illustrated by a point outside the production possibilities curve. D. is illustrated by a point inside the production possibilities curve

D. is illustrated by a point inside the production possibilities curve.

Any combination of goods lying outside of the budget line A.implies that the consumer is not spending all of the consumer's income. B.yields less utility than any point on the budget line. C.yields less utility than any point inside the budget line. D. is unattainable, given the consumer's income.

D. is unattainable, given the consumer's income

The scientific method is A.not applicable to economics because economics deals with human beings. B.also known as the economic perspective. C.employed to form hypotheses out of existing laws and theories. D. used by economists and other social scientists, as well as by physical scientists and life scientists, to formulate and test hypotheses.

D. used by economists and other social scientists, as well as by physical scientists and life scientists, to formulate and test hypotheses.

Refer to the table. If the economy is producing at production alternative C, the opportunity cost of the 10th unit of consumer goods will be A.4 units of capital goods. B.2 units of capital goods. C.3 units of capital goods. D. ⅓ of a unit of capital goods.

D. ⅓ of a unit of capital goods.

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates A. distorted priorities. B. opportunity costs. C. increasing opportunity costs. D. productive efficiency.

Opportunity Cost

Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is A.MUC / MUD. B.one-half. C.PD / PC. D. PC / PD.

PC/PD

Economists contend the most economic decisions are A.random. B.chaotic. C.spontaneous. D. purposeful.

Purposeful

Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the resulting budget line is A. 5. B. 1/5. C.4. D. 20

B. 1/5

The economic perspective entails .A. irrational behavior by individuals and institutions. B. a comparison of marginal benefits and marginal costs in decision making. C. short-term but not long-term thinking. D. rejection of the scientific method.

B. A comparison of marginal benefits and marginal costs in decision making

Which of the following so economists consider to be capital? A. a pair of stockings B. a construction crane C.a savings account D.a share of IBM stock

B. A construction crane

The budget line shows A. the amount of product X that a consumer is willing to give up to obtain one more unit of product Y. B. all possible combinations of two goods that can be purchased, given money income and the prices of the goods. C.the minimum amount of two goods that a consumer can purchase with a specific money income. D.all possible combinations of two goods that yield the same level of utility to the consumer.

B. All possible combination of two goods that can be purchased, given money income and the prices of the goods.

Which of the following is a CORRECT statement A. Economic concepts or laws that are valid during recessions are necessarily valid during prosperity. B. Although they are generalizations, economic laws are useful because they allow us to predict and therefore influence or adjust to events. C.Economists use the scientific method. Therefore, economic laws are as quantitatively precise as the laws of physics or chemistry. Because economics is primarily concerned with questions of "ought," it is a branch of applied ethics and not scientific

B. Although they are generalizations, economic laws are useful because they allow us to predict and therefore influence or adjust to events.

Refer to the graphs. Assume that pizza is measured in slices and beer in pints. In which of the graphs is the opportunity cost of a pint of beer the lowest? A. graph A B. graph B C.graph C D.graph D

B. Graph B

The man function of the entrepreneur is to A. make routine pricing decisions. B. innovate. C.purchase capital. D.create market demand

B. Innovate

The four factors of production are: A. land, labor, capital, and money. B. land, labor, capital, and entrepreneurial ability. C.labor, capital, technology, and entrepreneurial ability. D.labor, capital, entrepreneurial ability, and money.

B. Land, labor, capital and entrepreneurial ability.

Purposeful behavior means that A. people are selfish in their decision making. B. people weigh costs and benefits to make decisions. C.people are immune from emotions affecting their decisions. D.decision makers do not make mistakes when weighing costs and benefits.

B. People weigh costs and benefits to make decisions

Scarcity A. persists only because countries have failed to achieve continuous full employment. B. persists because economic wants exceed available resources. C.has been solved in all industrialized nations. D. has been eliminated in affluent societies such as the United States and Canada.

B. Persists because economic wants exceeds available resources

"Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." This statement is A. positive but incorrect. B. positive and correct. C.normative but incorrect. D.normative and correct.

B. Positive and Correct

Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer because college students drink too much." We can conclude that A. Positive and incorrect B. Positive and Correct C. Normative and Correct D. Normative and Incorrect

B. Positive and Correct

According to Emerson: "Want is a growing giant whom the coat of Have was never large enough to cover." According to economists, "Want" exceeds "Have" because A. people are greedy. B. productive resources are limited. C. human beings are inherently insecure. D. people are irrational.

B. Productive resources are limited

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of A. resource scarcity and the necessity of choice. B. purposeful behavior. C. marginal costs that exceed marginal benefits. D. the trade-off problem that exists between competing goals.

B. Purposeful behavior

Which of the following will not produce an outward shift of the production possibilities curve? A. upgrading the quality of a nation's human resources B. reducing unemployment C.increasing the quantity of a society's labor force D.improving a society's technological knowledge

B. Reducing unemployment

Other things equal, an increase in a consumer's money income A. increases the amount of utility a consumer receives from a given quantity of a good. B. shifts the individual's budget line rightward because she can now purchase more of both products. C.eliminates the individual's economizing problem. D.causes the consumer to choose a different combination of goods along a given budget line.

B. Shifts the individual's budget line rightward because she can now purchase more of both products.

Macroeconomics can best be described as the A. analysis of how a consumer tries to spend income. B. study of the large aggregates of the economy or the economy as a whole. C.analysis of how firms attempt to maximize their profits. D.study of how supply and demand determine prices in individual markets.

B. Study of large aggregates of the economy or the economy as a whole.

The process by which economists test hypotheses against facts to develop theories, principles, and models is called A. the economic perspective. B. the scientific method. C.policy economics. D.microeconomics.

B. The scientific method

Normative statements are concerned primarily with A. facts and theories. B. what ought to be. C.what is. D.rational choice involving costs and benefits.

B. What ought to be

Microeconomics is concerned with A. the aggregate or total levels of income, employment, and output. B. a detailed examination of specific economic units that make up the economic system. C.positive economics, but not normative economics. D.establishing an overall view of the operation of the economic system.

B. a detailed examination of specific economic units that make up the economic system.

Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that

B. all factors other than the price of bananas (for example, consumer tastes and incomes) are assumed to be constant.

Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. Some neighbors accept Alex's offer and others refuse. Economists would describe Alex's behavior as A. rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants. B. greedy because he is asking for a high wage that some of his neighbors can't afford to pay. C. selfish because he is asking for a wage that is higher than others might charge. D. irrational because some neighbors refused his offer.

A. rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

A nation's production possibilities curve is bowed out from the origin because A. resources are not generally equally efficient in producing every good. B.opportunity costs of producing a good tend to fall as more of the good is produced. C.resources are scarce. D.wants are virtually unlimited.

A. resources are not generally equally efficient in producing every good.

Opportunity cost exists because A. the decision to engage in one activity means forgoing some other activity. B.wants are scarce relative to resources. C.households and businesses make rational decisions. D.most decisions do not involve sacrifices or trade-offs.

A. the decision to engage in one activity means forgoing some other activity

Macroeconomics approaches the stud of economics from the viewpoint of A. the entire economy. B.governmental units. C.the operation of specific product and resource markets. D.individual firms.

A. the entire economy

If the production possibilities curve is a straight line, A. the two goods will sell at the same market prices. B. economic resources are perfectly substitutable between the production of the two goods. C.the two goods are equally important to consumers. D. equal quantities of the two goods will be produced at each possible point on the

B. economic resources are perfectly substitutable between the production of the two goods

The economizing problem is one of deciding how to make the best use of A. virtually unlimited resources to satisfy virtually unlimited wants. B. limited resources to satisfy virtually unlimited wants. C.unlimited resources to satisfy limited wants. D.limited resources to satisfy limited wants.

B. limited resources o satisfy virtually unlimited wants