Chapter 1 – Economics and Economic
Chapter Reasoning
1 – Economics
_ Study
and
Guide
Economic
Chapter
and Key
Reasoning
1 –
Concepts.pdf
Economics
_ Study
and
Guide
Economic
and Key
Reasoning
Concepts.pdf
_ Study Guide and Key Concepts.pdf
Chapter 1 –
Economics and
Economic
Reasoning | Study
Guide and Key
Concepts
Chapter 1 – Economics and Economic
Chapter Reasoning
1 – Economics
_ Study
and
Guide
Economic
Chapter
and Key
Reasoning
1 –
Concepts
Economics
_ Study
and
Guide
Economic
and Key
Reasoning
Concepts.pdf
_ Study Guide and Key Concepts.pdf
, Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf
1.)Scarcity exists because economies cannot produce Answer:True
enough to meet the perceived desires of all individuals. Explanation:Scarcity exists because what people desire exceeds what they are
T or F? able to produce.
2.) only marginal costs, not sunk costs, affect economic Answer: True.
decisions if individuals are rational. T/F? Explanation:Sunk costs are costs that have already been incurred and cannot
be recovered no matter what action is taken. Marginal costs represent the
additional costs associated with undertaking an economic activity, and an
individual must balance these costs against the marginal benefit from the
activity to make a rational choice.
11.)The answers to an economy's three central economic Answer:TRUE
problems are determined by the interaction of three Explanation: Economic, political, and social forces determine how an economy
forces: economic forces, political forces, and social operates and thus answers the three economic problems.
forces. T/F?
3.) The economic decisions rule is to undertake an A: False
action only when the marginal benefits of that action E: The economic decision rule is to undertake an action only when the marginal
are greater than its total costs. benefits of that action are greater than its marginal costs.
4.) The opportunity cost of undertaking an activity False
includes any sunk cost. T/F? E:sunk costs are costs that already have been incurred and cannot be
recovered no matter what action is taken. Thus, they do not represent an
opportunity cost, which are an additional cost.
Ch1 Economics and Economic Reasoning Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf
Chapter Reasoning
1 – Economics
_ Study
and
Guide
Economic
Chapter
and Key
Reasoning
1 –
Concepts.pdf
Economics
_ Study
and
Guide
Economic
and Key
Reasoning
Concepts.pdf
_ Study Guide and Key Concepts.pdf
Chapter 1 –
Economics and
Economic
Reasoning | Study
Guide and Key
Concepts
Chapter 1 – Economics and Economic
Chapter Reasoning
1 – Economics
_ Study
and
Guide
Economic
Chapter
and Key
Reasoning
1 –
Concepts
Economics
_ Study
and
Guide
Economic
and Key
Reasoning
Concepts.pdf
_ Study Guide and Key Concepts.pdf
, Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf
1.)Scarcity exists because economies cannot produce Answer:True
enough to meet the perceived desires of all individuals. Explanation:Scarcity exists because what people desire exceeds what they are
T or F? able to produce.
2.) only marginal costs, not sunk costs, affect economic Answer: True.
decisions if individuals are rational. T/F? Explanation:Sunk costs are costs that have already been incurred and cannot
be recovered no matter what action is taken. Marginal costs represent the
additional costs associated with undertaking an economic activity, and an
individual must balance these costs against the marginal benefit from the
activity to make a rational choice.
11.)The answers to an economy's three central economic Answer:TRUE
problems are determined by the interaction of three Explanation: Economic, political, and social forces determine how an economy
forces: economic forces, political forces, and social operates and thus answers the three economic problems.
forces. T/F?
3.) The economic decisions rule is to undertake an A: False
action only when the marginal benefits of that action E: The economic decision rule is to undertake an action only when the marginal
are greater than its total costs. benefits of that action are greater than its marginal costs.
4.) The opportunity cost of undertaking an activity False
includes any sunk cost. T/F? E:sunk costs are costs that already have been incurred and cannot be
recovered no matter what action is taken. Thus, they do not represent an
opportunity cost, which are an additional cost.
Ch1 Economics and Economic Reasoning Ch1 Economics and Economic Reasoning.pdf Ch1 Economics and Economic Reasoning.pdf
