Exercise 2 Basic Concepts and Problems of Economics
Exercise 2 Basic Concepts and Problems of Economics
Exercise 2 Basic Concepts and Problems of Economics
Group:
1. The principle of increasing marginal opportunity cost holds in which of the following cases?
2. If you move from a point inside the production possibility curve to a point on the production
possibility curve, it follows that efficiency is:
3. If a production possibility curve representing a tradeoff between a grade in English and a grade
in math has a negative slope we know that:
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D. one can get better grades in English only if one gets better grades in math.
As you move from point A to point B:
5. Refer to the graph above. When you're moving from point C to B the opportunity cost of butter
in terms of guns is
A. 1/3.
B. 1.
C. 2/3.
D. 3/2.
6. Refer to the graph above. In the range of points between A and B there is
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BEEB1013 Group:
Group:
A. government sees to it that people work for the common good until they could be relied upon to
do that on their own.
B. the invisible hand insures that individual decisions are made for the common good.
C. government owns the means of production, but individual self-interest determines how
production is organized.
D. individuals are able to act in the best interest of everyone without direction from government
or the invisible hand.
--END OF QUESTIONS--