1. Voluntary exchange between two people makes one person better than the other

Question

1. Voluntary exchange between two people makes one person better than the other a) True b) False 2. The marginal cost of an activity is a) The opportunity cost of the best alternative b) Always the same as the marginal benefit c) The additional cost resulting from a small increase in the activity d) The cost for the best alternative 3. The production possibilities curve shows the possible combinations of products that an economy can produce given that its productive resources are employed and efficiently used a) True b) False 4. The opportunity cost of a good is a) Not existing in a competitive market b) The value of other goods sacrificed to get another unit of that good c) The additional benefit resulting from a small increase in activity d) The time lost in locating it 5. The study of macroeconomics focuses on issues such as inflation, unemployment and economic growth a) True b) False 6. Which scenario leads to a shift in the production possibility curve outwards? a) An increase in demand b) An increase in the quantity or resources or technological innovation c) An increase in demand and shortage in supply, occurring at the same time d) An increase in opportunity cost

Explanation / Answer

1.b 2.c 3.a 4.b 5.a 6.a

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