Economic Concepts and Principles

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An Economy that is producing the maximum amount of goods and services is considered to be

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efficient

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Opportunity Cost is

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that which we give up (forgo) when we make an economic choice or decision

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Scarcity is an economic problem with which all societies are faced

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true

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Economic growth causes the production possibilities frontier to contract (move to the left)

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false

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A graph showing all the combinations of goods and services that can be produced if all of...

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production possibilities curve

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A production possibilities graph shows

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different ways to use an economy's resources

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What is the name of the graph that shows all the combinations of goods and services that can be produced?

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production possibilities curve

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The total utility of the first piece of cake is 50. total satisfaction of second piece is 10. Which of the following statements is true? Options: the marginal utility of the second piece is 40, the marginal utility of the first piece of of cake is 10, the total utility of consuming 1 piece of cake is greater than total utility, the total utility of consuming 2 pieces of cake is 60

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the total utility of consuming 2 pieces of cake is 60

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Which of the following will cause an outward shift of the production possibilities curve? A natural disaster limiting a vital natural resource, A decrease in the nations birth rate, decreasing the labor force, Cuts in funding in educational training for employees, An increase in skilled workers

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An increase in skilled workers

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Which of the following is the maximum amount that a consumer is willing to pay for an additional benefit? marginal benefit, marginal revenue, consumption cost, marginal consumption

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marginal benefit