Problem%20Set%20Chp.2

Problem%20Set%20Chp.2 - Problem Set Chp.2 The Economic...

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Problem Set Chp.2: The Economic Problem - Scarcity and Choice MULTIPLE CHOICE: Choose the one alternative that best completes the statement or answers the question. 1. Factors of production are A. the mathematical calculations firms make to determine production. B. weather and social and political conditions that affect production. C. the physical relationships between economic inputs and outputs. D. inputs into the production process. 2. Which of the following would an economist classify as capital? A. A phone that you use to make personal calls B. A computer used by an accountant in a firm C. A public corporation's employees D. A silver earring 3. In economics, capital refers to 4. The process of using resources to produce new capital is 5. As economists use the term, an act of ‘investment’ occurs when a(n) 6. Because resources are scarce, the opportunity cost of investment in capital is A. infinite. B. zero. C. forgone future consumption. D. forgone present consumption. 1
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7. The production possibilities frontier is a 8. Which of the following is the most accurate statement about production possibilities?
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