Microeconomics Chapter 1 Section 2

Which of the following statements is true?

Which of the following statements is true?

Xavier has two job offers: the first pays $2,000 per month and the second pays $1,500 per month. What is the opportunity cost of taking the first offer?

$1,500 per month

Trisha takes 2 hours to design a greeting card and 4 hours to design a website. If she can work for 10 hours a day, which of the following options is a combination on her production possibilities curve?

1 greeting card and 2 websites

Lena needs to decide if she should study for an exam or work an extra shift at the bookstore. What kind of a good is 'time' in this example?

A scarce good

Why are production possibilities curves 'bowed out'?

Because of the law of increasing opportunity cost

Define a scarce good.

It is a good that has more than one alternative use.

Which of the following is true of a free good?

It is a good with no opportunity cost.

Identify the term that refers to the highest-valued choice that an individual foregoes when choosing to do more of one activity.

The opportunity cost of the activity