Opportunity cost is the single best alternative given up.
Circle one: True False
What does scarcity mean?
- Money buys everything
- Wants exceed available resources
- Resources never run out
Which resource is scarce for rich and poor alike?
What does moving along the frontier cost?
- Some of the other good
- Nothing, it is free
- A shift of the curve
What does a point inside the frontier show?
- An unreachable dream
- Wasted resources
- The perfect mix
Why does the frontier bend instead of running straight?
- Rulers draw curves
- Resources suit the two jobs differently
- Points hide behind the axes
What can push the whole frontier outward?
- More resources, better tech, stronger skills
- Higher price tags only
- Fewer workers
A government puts an extra billion into hospitals. What is the real cost?
- Every listed want at once
- Nothing, budgets are free
- The best other use of that billion
Choosing costs something W1-mt_p_c7nNzHEw-s1
- True · It names one best forgone use, not the whole list.
- Wants exceed available resources · Wants outrun labour, land, materials and time.
- Time · Everyone gets just 24 hours a day, however rich.
- Some of the other good · More of one good on the curve means fewer of the other.
- Wasted resources · Inside means the economy could make more of both goods.
- Resources suit the two jobs differently · Shifting ill-suited resources across costs more each time.
- More resources, better tech, stronger skills · Growth in means raises what the economy can make.
- The best other use of that billion · The cost is the single best forgone use, such as highways.