microeconomics unit 1

According to Exhibit 2-1, if Hans types one fewer page, how many loads of laundry can he do in the time saved on typing

2/3 of a load

It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything

False

The economic question of "what to produce" is often referred to as the distribution question

False

The set of mechanisms and institutions that resolve the basic economic questions is called the

economic system

Someone who committed the association-is-causation fallacy might conclude that

event B, which follows event A, was caused by the event A

Natural resources are

included in the category of resources called gifts of nature

An economic model

is a simplification of the real world

If you enjoy playing golf, the opportunity cost of cleaning your room

is greater on sunny days than it is on rainy days

An economic model is useful if it

makes accurate predictions

All economic models must involve simplifications because

reality is too complex to understand in its entirety, so we must reduce it to a level that we can understand

If an economy is operating at a point inside the production possibilities frontier, then

some of the nation's resources are unemployed

One might commit the fallacy of composition by concluding that

what is good for the individual is necessarily good for the group

A fallacy of composition is to assume that

what is true for any individual component in a group is true for the group as a whole

Which of the following is an example of capital

all of the above

A good economic theory brings clarity to chaos

true

A point inside the production possibilities curve illustrates a situation in which resources are not fully employed

true