Question 1(1 point)

Scarcity can best be defined as a situation in which:

Question 1 options:

	consumers look for bargains.
	some producers are selfish with resources.
	people respond to incentives.
	all wants cannot be satisfied due to resource constraints.

Question 2(1 point)

Trade-offs are:

Question 2 options:

	associated with every decision.
	do not exist if we receive something for free.
	always result in market-failure.
	can be avoided through economic planning.

Question 3(1 point)

Opportunity Cost:

Question 3 options:

	only includes explicit, out of pocket expenses.
	is the value of your next best alternative.
	is never provided in dollar values.
	would not include lost wages from working when deciding to take a vacation.

Question 4(1 point)

The production possibilities frontier is a model that shows the various combinations of output that an economy

Question 4 options:

	wants to consume.
	wants to produce.
	can produce.
	can consume.

Question 5(1 point)

If an economy is producing efficiently, then

Question 5 options:

	there is no way to produce more of one good without producing less of another good.
	it is possible to produce more of both goods without increasing the quantities of inputs that are being used.
	it is possible to produce more of one good without producing less of another good.
	it is not possible to produce more of any good at any cost.

Question 6(1 point)