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8 terms

Final test

STUDY
PLAY
The study of economics arises due to?
scarcity.
Which of the following best describes an assumption economists make about human behavior?
They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time.
Every society faces economic trade-offs. This means
producing more of one good means less of another good can be produced.
In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions.
households and firms
Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.
C) marginal cost; marginal cost
The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.
opportunity cost
The ________ production points on a production possibility curve are the points along and inside the production possibility frontier.
attainable
Increasing marginal opportunity cost implies that
he more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.