Name_KEY_ Student ID_
Part I. Multiple Choices. Choose the one alternative that completes the statement or
answers the question. (40 points)
1. Every point on the production-possibilities curve is considered to be:
Homework #1 Multiple Choice:
4. Opportunity cost is
- The best alternative that must be given up in order to get something else.
5. A production possibilities curve indicates the
- Maximum combinations of goods and services an economy can produce given it
Multiple Choice Questions (30 questions @ 1 mark each = 30 Marks)
Chapter 1 Book Notes
The Economic Challenge
How does the economy work?
- Markets shape economic outcomes
- Government reshapes economic performance
- People make economic decisions re: limited resources.
Chapter 2 Book notes
The US Economy: A Global View
Gross domestic product (GDP):
Per capita GDP:
What America Produces
total market value of all final goods/services produced within a nations
3. Which of the following is most likely a private good?
4. The free-rider problem
Reflects the inability to exclude an individual from the benefits of someone elses purchase.
5. If Good X has social demand that is less than market demand