Submitted by: Submitted by 7758521
Views: 262
Words: 3504
Pages: 15
Category: Business and Industry
Date Submitted: 09/17/2012 12:58 PM
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. Because the resources are scarce, we must give up some of one good in order to acquire more of another. This is the concept of :
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a. opportunity costs
b. specialisation
c. comparative advantage
d. absolute advantage
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2. The opportunity cost of buying a drink is
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a. the money spent
b. the total benefit gained from consumption
c. the dollar value of all alternatives
d. the next best alternative use of the money spent
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3. Any point on the Production Possibility Frontier (PPF) is
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a. socially desirable
b. attainable and efficient
c. unattainable and efficient
d. unattainable without further investment
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4. Which of these causes an outward shift of the Production Possibility Frontier (PPF) for good X and Y
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a. an increase in production X
b. an increase in the amount of available labour and capital
c. transferring labour and capital from X production to Y production
d. both (a) and (c)
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5. Which of following will NOT cause change in demand for ice cream?
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a. a change in population size
b. a change in the price of ice cream
c. a change in seasons
d. a change in consumer incomes
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6. Which of the following would shift the supply curve for a product to the left?
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a. an increase in the price of resource used in the production
b. the price of a substitute good in production decreases
c. an...