Q: Which equation best represents the opportunity cost of attending a baseball game?

$$\text{Opportunity Cost} = \text{Total Cash Spent} + \text{Value of Your Time}$$

Question 1

Which of the following best describes the concept of scarcity in economics?

Accepted Answer

Wants are unlimited, but resources are limited.

Question 2

Suppose you spend $$\50$ on a concert ticket and $$\$$20 on $$transportation. If you could have earned $$\40$ working that night, what is your opportunity cost of attending the concert?

Accepted Answer

$$\90$

Question 3

Which statement is a normative statement?

Accepted Answer

The government ought to increase the minimum wage.

Question 4

Economics can best be defined as the study of:

Accepted Answer

How society manages its scarce resources

Question 5

Which of the following is an example of a trade-off?

Accepted Answer

Choosing to spend time studying instead of going out with friends

Question 6

If a country is operating inside its production possibilities frontier (PPF), what does this indicate?

Accepted Answer

The country is not using all its resources efficiently.

Question 7

Which of the following best illustrates allocative efficiency?

Accepted Answer

Producing goods that consumers value most highly

Question 8

A positive statement in economics:

Accepted Answer

Makes a claim about how the world is

Question 9

Which of the following is an example of productive efficiency?

Accepted Answer

Producing 100 units of a product at the lowest possible cost

Question 10

If the government provides healthcare to all citizens, this is an example of:

Accepted Answer

Equality (Equity)

Question 11

Which of the following is NOT a focus of macroeconomics?

Accepted Answer

Maximizing profit in different market structures

Question 12

Suppose the price of gas increases. According to economic theory, what is a likely outcome?

Accepted Answer

Consumers will buy less gas.

Question 13

Which equation best represents the opportunity cost of attending a baseball game?

Accepted Answer

$$	ext{Opportunity Cost} = 	ext{Total Cash Spent} + 	ext{Value of Your Time}$$

Question 14

Which of the following statements is most likely to be considered a normative statement?

Accepted Answer

The government should provide healthcare to all citizens.

Question 15

If a society is getting the maximum benefits from its scarce resources, it is achieving:

Accepted Answer

Efficiency

Question 16

Which of the following is a microeconomic topic?

Accepted Answer

Maximizing profit in different market structures

Question 17

If minimum wage laws are a bad idea because they cause unemployment, this statement is:

Accepted Answer

Normative

Question 18

Which of the following best describes a trade-off?

Accepted Answer

Giving up one thing to get something else

Question 19

Which of the following is an attainable point on a production possibilities frontier (PPF)?

Accepted Answer

A point inside the PPF

Question 20

Which of the following is most likely to be a positive statement?

Accepted Answer

Minimum wage laws cause unemployment.

Foundations of Economics: Scarcity, Choice, and Efficiency

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