Explain why scarcity exists in this economy. Opportunity Cost of: 1 Car (in terms of tons of grain given up) 1 Ton of Grain (in terms of cars given up) U.S. 2 1/2 2/5 Japan 1 1/4 4/5 d. Neither country has an absolute advantage in producing cars, since they're equally productive (the same output per worker); the United States has an absolute advantage in producing grain, since it is more productive (greater output per worker). Thus, we must give up 1 pound of butter for each extra gun we produce. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. 50 60 when consumers want more of an item than producers will offer at a particular price IDENTIFYING MAIN IDEAS Write the letter of the correct answer in the blank provided. Vol. The answer can be found in Chapter 1, Section 1.2, Scarcity: Limited Resources but Unlimited Wants. 2. Exam #1 – Answer Key. It is impossible to answer this question without knowing which good would be plotted on the vertical axis. Due to scarcity, choices must be made. What is the trade-off discussed with Alaska? how people make decisions by thinking at the margin. Identify the letter of the choice that best completes the statement or answers the question. chapter_1_section_2_opportunity_costs.pdf I will fill out the questions on my review sheet completely on standards I am not proficient in based on reading the power-points. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. Scarcity. 1) Item Why? the concept of opportunity cost. P: The good, according to Plato, is that which furthers a person's real interests. Key Terms and Concepts Directions: Match the terms with the descriptions. The PPF separates two regions: an attainable region, which consists of the ... n ANSWERS TO Assignments for mastering KEY IDEAS Assignment 2.1 Answers. 2. Multiple . CHAPTER 4, SECTION 2 QUIZ Sentence Completion For questions 1–5, write the word or phrase that best completes each sentence on the line provided. C 8. To find this simply divide both sides of the above equation by 100 to get: 2. 1. Everyone acts in their own “self-interest.” 4. 1. Did You Know? 1)An incentive A)is the opposite of a tradeoff. B)could be a reward but could not be a penalty. ANS: C PTS: 1 DIF: Average REF: Page 20 NOT: Learn more about this question in Economics Principles and Practices, page 20, and in the Reading Essentials and Notetaking Guide, Chapter 1, Section 3. Chapter 1 - economics basics - questions and answers Practical question (Chapter 1 to 5) University. Chapters 1-2 & 4-6 Duke Unit I “The Principles of Economics” Chapter 1 Explain the difference between a need and a want. Answer keys are available to faculty who adopt Waymaker, OHM, or Candela courses with paid support from Lumen Learning. ANS: ... LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY… Analytical Problems 1. Objectives. CHAPTER QUIZA Class Date Scarcity and the Factors of Production SECTION 1 A. For additional practice, visit this book's Online Learning Center at glencoe.com. Active Themes Human history arguably began approximately 50,000 years ago with the “Great Leap”: the development of complex tools, such as needles, awls, etc., as well as the construction of large houses and buildings and the creation of art (cave paintings). Economics is the study of how people A. calculate their income tax. ECON 500 – Spring 2004. - Since all goods and services are limited, these trade-offs are unavoidable. Explain why scarcity exists in this economy. Resources but Unlimited wants 1 - economics basics - questions and answers Practical question ( 1... Good, according to Plato, is one of the top opportunity cost ) quiz which has attempted... 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