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F1: Scarcity, Trade-off, Opportunity Cost

Last updated over 6 years ago

5 questions

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1

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Question 1

1.

Small pox is a terrible disease that has killed millions of people throughout history. Through systematic use of a small pox vaccine, the World Health Organization declared small pox eradicated (eliminated) in 1980. Would small pox meet the economic definition of scarcity? Discuss.

Question 2

2.

Categorize each of the following productive resources for a smoothie restaurant under the appropriate factor of production.

Workers who can read and follow recipes
Strawberries used in the smoothies.
The owner who purchased and organized all inputs.
The blender used to mix the smoothies.

Natural Resources (Land)
Human Capital
Physical Capital (Capital Good)
Entrepreneur

Question 3

3.

Sadie decided to go straight to college after high school rather than working for a year. Which of the following best describes the opportunity cost of her decision to go to college?

The income she gave up by not going directly into the workforce.

The money she must spend on college tuition.

The time she spend studying in college.

The human capital she will gain by becoming more educated.

Question 4

4.

Based on the image above, it is rational to reduce pollution up to which point?

F

G

H

I

Question 5

5.

You hear that a developing nation is investing heavily in education and technology, while encouraging entrepreneurship and giving people the incentive to make a profit. Which of the following will most likely happen in this developing nation?

The economy will collapse due to excessive public debt.

People will begin moving out of the country seeking better opportunities elsewhere.

Economic growth and the standard of living will rise.

The production possibilities curve for the nation will remain unchanged.