Layton4e_EV_ch02 - Chapter 2Production possibilities and opportunity cost MULTIPLE CHOICE The three fundamental economic questions 1 Why must every

Layton4e_EV_ch02 - Chapter 2Production possibilities and...

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Chapter 2—Production possibilities and opportunity costMULTIPLE CHOICEThe three fundamental economic questions1.Why must every nation answer the three fundamental economic questions?A.Because of increased international trade and cooperation.B.Because of the problem of scarcity.C.Because rich nations must subsidise the development of poor nations.D.Because some nations are more successful than others.ANS:BPTS:1DIF:EasyREF:The three fundamental economic questionsOBJ:TYPE: RETOP:The three fundamental economic questions2.The ‘For whom to produce’ question: 3.Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?A.The ‘What to produce?’ question.B.The ‘Why produce?’ question.C.The ‘How to produce?’ question.D.The ‘For whom to produce?’ question.4.The opportunity cost of watching a movie is the:5.The opportunity cost of watching television is:A.the cost of not watching all other programs that appear on other stations.B.unable to be estimated because there is no money expenditure involved.C.the next best alternative you do instead of watching the program.D.zero if it benefits you.
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ANS:CPTS:1DIF:EasyREF:Opportunity costOBJ:TYPE: RETOP:Opportunity cost6.Which of the following does notillustrate opportunity cost?
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