Scarcity & PPF

Adam Smith, in 'Wealth of Nations,' argued that people acting in their own self interest is ____________ for the economy.

• good

• bad

• not always bad

• he doesn't say

The fact that there are not enough resources to meet the needs of each individual person is known as.

• Supply

• Demand

• Scarcity

• None of these

Which of these is NOT an example of a scarce resource

• Air

• Food

• Time

• Money

What is the purpose of Economic Models

• To make people do math

• To measure and help simplify a complex world

• Models were created for fun

• None of these

What are the 4 Factors of Production?

• People, Buildings, Land, Scarcity

• Scarcity, Supply, Demand, Opportunity Cost

• None of these

• Land, Labor, Capital, Technology

What is the difference between Normative and Positive Statements? Select all that apply.

• One of Normal and the other is not.

• One can be tested

• One is Positive and One is Negative

• One is an opinion

ceteris peribus

• everything else is equal

• nothing is equal

• supply is greater than demand

• unlimited wants

True or False, PPF assumes that you're only trading off between 2 things and everything else is equal

• True

• False

PPF Curve is bowed out means

• Opportunity cost is decreasing

• Opportunity cost stays the same

• Opportunity Cost is Increasing

• None of these

PPF has zero curve means

• Opportunity Cost is Decreasing

• Opportunity Cost remains the same

• Opportunity Cost is Increasing

• None of these