HMGT 242

What is the most basic problem of economics?

• Scarcity

• Productivity

• Allocation

• Specialization

Opportunity Cost is best defined as

• The benefit you gain by making a decision 

• The price you pay to purchase something 

• The value of the next best alternative that is given up due to the choice you made. 

• The amount of debt you take on by making a decision

What is the production possibilities curve?

• land, labor, capital, entrepreneurs

• how much money is

• a graph that shows how much an economy can produce between 2 goods

The opportunity cost of shifting production from "Point E" to "Point C" would be:

• 20 chocolate bars

• 70 cans of soda

• 30 cans of cola

• 30 chocolate bars

If a point lies on the curve this means efficienncy. If a point lies inside the curve, what does that tell?

• It is impossible with the given resources

• They are being over efficient

• They are being inefficient

• They are still efficient