Unformatted text preview: er effort should be devoted to finding more resources.
B. allocating resources to one particular use means that we necessarily forgo some
alternative use of those resources.
C. if someone wins from a reallocation of resources then someone else must lose.
D. None of the above
2. Choices necessarily involve making tradeoffs because
A. markets and trade are central to economic activity.
B. everything has a price.
C. resources are scarce.
D. All of the above
3. The “feasible set” is
A. the set of options that are available given the scarce resources available.
B. that part of the larger “choice set” for which the available choices are feasible.
C. the additional set of choices that would be feasible if more resources were available.
D. the additional set of choices that are available when individuals trade with each other.
4. Policy on greenhouse gas emission reductions is complicated by the fact that
A. the costs are incurred today but the benefits do not accrue until the future.
B. climate change in the near future is a function of past emis...
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This document was uploaded on 03/03/2014.
- Spring '14