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
