Podcast
Questions and Answers
What is the main reason why scarcity leads to a need for choices to be made in an economy?
What is the main reason why scarcity leads to a need for choices to be made in an economy?
- Because wants and needs are limited
- Because resources are unlimited, but wants and needs are scarce
- Because wants and needs are unlimited, but resources are scarce (correct)
- Because resources are abundant
What does the production possibility frontier (PPF) show?
What does the production possibility frontier (PPF) show?
- The minimum output that can be produced in an economy
- The average output that can be produced in an economy
- The maximum output that can be produced in an economy (correct)
- The total output that can be produced in an economy
What is the opportunity cost of attending university?
What is the opportunity cost of attending university?
- The number of hours you spend studying
- The number of years you spend at university
- The salary you could have earned if you didn't attend university (correct)
- The cost of tuition fees
What is allocative efficiency?
What is allocative efficiency?
What is the difference between microeconomics and macroeconomics?
What is the difference between microeconomics and macroeconomics?
What is the term for using our limited resources to produce TOO MUCH or TOO LITTLE of a particular good or service?
What is the term for using our limited resources to produce TOO MUCH or TOO LITTLE of a particular good or service?
What is the definition of productive efficiency?
What is the definition of productive efficiency?
What can cause an outward shift of the production possibility frontier?
What can cause an outward shift of the production possibility frontier?
What is the opportunity cost of five more units of B in an economy at point C?
What is the opportunity cost of five more units of B in an economy at point C?
Why is it possible to consume outside the production possibility frontier?
Why is it possible to consume outside the production possibility frontier?
What is the consequence of shifting resources from consumption goods to capital goods in the short run?
What is the consequence of shifting resources from consumption goods to capital goods in the short run?
What is the result of trading two units of A abroad for 12 units of B?
What is the result of trading two units of A abroad for 12 units of B?
What is the opportunity cost of a decision?
What is the opportunity cost of a decision?
Which of the following is a microeconomic issue?
Which of the following is a microeconomic issue?
What is the primary difference between microeconomics and macroeconomics?
What is the primary difference between microeconomics and macroeconomics?
What is the Production Possibility Frontier (PPF)?
What is the Production Possibility Frontier (PPF)?
What is the implication of scarcity in economic decision making?
What is the implication of scarcity in economic decision making?
Why do all decisions involve opportunity costs?
Why do all decisions involve opportunity costs?
