Micro2Q

Micro2Q - Micro Chapter 2 Study Guide Questions Multiple...

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Micro Chapter 2 Study Guide Questions Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The opportunity cost to the United States of placing a man on the moon was a. the loss of government revenues that were allocated to the mission. b. the cost of all production involved in the space program. c. the loss of utility from the highest valued bundle of products that had to be forgone because of the moon mission. d. less than zero, since the long-run benefit of the project will be greater than the cost. ____ 2. When Benjamin Franklin wrote, "Remember that time is money!" he understood a. the incentives created by property rights. b. the law of comparative advantage. c. the concept of opportunity cost. d. that watches cost money. ____ 3. Which of the following best describes the implications of the law of comparative advantage? If each person sells goods for which he or she has the greatest comparative advantage in production and buys those for which his or her comparative advantage is least, the a. total output available to each person can be expanded by specialization and exchange. b. total output will fall. c. buyers of goods will gain at the expense of sellers. d. sellers of goods will gain at the expense of buyers. ____ 4. The owners of private property will a. use their property for selfish ends, taking no account of the impact their behavior has on others. b. use their property in ways that others value because the market will generally reward them
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Micro2Q - Micro Chapter 2 Study Guide Questions Multiple...

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