Test 1-4 Part A 1. Scarcity as defined in economics: K. Occurs when there are not...

Transcribed Image Text:

Test 1-4 Part A 1. Scarcity as defined in economics: K. Occurs when there are not enough resources to produce all that a society desires L. Is a problem only faced by the Less Developed Countries (LDCs). M. Is not an issue for the affluent industrially-advanced nations. N. Refers to situations where the producer of a product is making its profit by creating fear. O. Refers to shortages of goods and services when the price level is too low 2. Economics is the study of how: N. To get rich in the shortest period of time. O. Society's scarce resources are used. P. Government finances a war. Q. To provide people with the largest amount of goods and services for their immediate consumption. 3. Opportunity cost: E. Can only be defined in dollars and cents. F. Is the dollar cost of producing a product. G. Refers to the disappointment caused by less than satisfactory performance by a product. H. The alternative that must be given up in order to get something else. 4. Economists use the ceteris paribus assumption in their analysis because it: A. Allows them to develop one-to-one, cause-and-effect relationships among economic variables. B. Converts a macroeconomic issue to a more manageable micro economic level. C. Helps them disguise their ideological agenda. D. Improves economic efficiency. E. All of the above. 5. Economists use economic models to: Y Clify the real world to make it manageable for analysis Test 1-4 Part A 1. Scarcity as defined in economics: K. Occurs when there are not enough resources to produce all that a society desires L. Is a problem only faced by the Less Developed Countries (LDCs). M. Is not an issue for the affluent industrially-advanced nations. N. Refers to situations where the producer of a product is making its profit by creating fear. O. Refers to shortages of goods and services when the price level is too low 2. Economics is the study of how: N. To get rich in the shortest period of time. O. Society's scarce resources are used. P. Government finances a war. Q. To provide people with the largest amount of goods and services for their immediate consumption. 3. Opportunity cost: E. Can only be defined in dollars and cents. F. Is the dollar cost of producing a product. G. Refers to the disappointment caused by less than satisfactory performance by a product. H. The alternative that must be given up in order to get something else. 4. Economists use the ceteris paribus assumption in their analysis because it: A. Allows them to develop one-to-one, cause-and-effect relationships among economic variables. B. Converts a macroeconomic issue to a more manageable micro economic level. C. Helps them disguise their ideological agenda. D. Improves economic efficiency. E. All of the above. 5. Economists use economic models to: Y Clify the real world to make it manageable for analysis

Answer rating: 100% (QA)

The detailed answer for the above question is provided below P... View the full answer