Ragan Microeconomics Chapter 1
(questions with correct answers)
What bis beconomics? b- bcorrect banswers✔✔Economics bis bthe bstudy bof bhow bscarce
bresources bare bused bto bsatisfy bunlimited bhuman bwants.
Factors bof bprouction b- bcorrect banswers✔✔Resources bused bto bproduce bgoods band
bservices
Goods b- bcorrect banswers✔✔Tangible bitems
Services b- bcorrect banswers✔✔Non-tangible bitems
Prouction b- bcorrect banswers✔✔The btransformation bof bfactors bof bproduction binto
bgoods band bservices.
Why bis bscarcity bnot bjust ba bproblem bfor bpoor bcountries? b- bcorrect banswers✔✔All
bcountries bhave bscarcities bbecause bresources bare bnever bunlimited, band bwants
balways bare.
What bis bopportunity bcost? b- bcorrect banswers✔✔The bbenefit bgiven bup bby bnot busing
bone's bresources bin bthe bbest balternative bway.
what bare bthe bthree bconcepts billustrated bby ba bproduction bpossibilitities bfrontier band
bwhy? b- bcorrect banswers✔✔Choice bis bindicated bby bbeing bable bto bchoose bdifferent
bpoints bon bthe bcurve. bScarcity bis bshown bby bthe bpresence bof bunattainable
bcombinations b'beyond' bthe bfrontier. bOpportunity bcost bis bshown bby bthe bnegative
bslope; ba bcertain bquantity bof bgood bone bmust bbe bgiven bup bto bobtain ba bcertain
bquanitty bo bgood btwo, bso bthe bnumber bof beach bgood battainable bare binversely
bproportional.
Why bis bthe bproduction bpossibilities bfrontier bconcave btowards bthe borigin? b- bcorrect
banswers✔✔Each bfactor bis bnot bequally buseful bin bproducing ball bgoods, bbut byou bwill
buse bthe bmost bsuited bfactors bfirst. bHowever, bas byou bproduce bmore band bmore bthe
bop bcost bincreases.
Why bis ba bmarket beconomy b'self-organizing' b? b- bcorrect banswers✔✔When beveryone
bpursues btheir bown binterests, ba bspontaneous b'order' bforms.
(questions with correct answers)
What bis beconomics? b- bcorrect banswers✔✔Economics bis bthe bstudy bof bhow bscarce
bresources bare bused bto bsatisfy bunlimited bhuman bwants.
Factors bof bprouction b- bcorrect banswers✔✔Resources bused bto bproduce bgoods band
bservices
Goods b- bcorrect banswers✔✔Tangible bitems
Services b- bcorrect banswers✔✔Non-tangible bitems
Prouction b- bcorrect banswers✔✔The btransformation bof bfactors bof bproduction binto
bgoods band bservices.
Why bis bscarcity bnot bjust ba bproblem bfor bpoor bcountries? b- bcorrect banswers✔✔All
bcountries bhave bscarcities bbecause bresources bare bnever bunlimited, band bwants
balways bare.
What bis bopportunity bcost? b- bcorrect banswers✔✔The bbenefit bgiven bup bby bnot busing
bone's bresources bin bthe bbest balternative bway.
what bare bthe bthree bconcepts billustrated bby ba bproduction bpossibilitities bfrontier band
bwhy? b- bcorrect banswers✔✔Choice bis bindicated bby bbeing bable bto bchoose bdifferent
bpoints bon bthe bcurve. bScarcity bis bshown bby bthe bpresence bof bunattainable
bcombinations b'beyond' bthe bfrontier. bOpportunity bcost bis bshown bby bthe bnegative
bslope; ba bcertain bquantity bof bgood bone bmust bbe bgiven bup bto bobtain ba bcertain
bquanitty bo bgood btwo, bso bthe bnumber bof beach bgood battainable bare binversely
bproportional.
Why bis bthe bproduction bpossibilities bfrontier bconcave btowards bthe borigin? b- bcorrect
banswers✔✔Each bfactor bis bnot bequally buseful bin bproducing ball bgoods, bbut byou bwill
buse bthe bmost bsuited bfactors bfirst. bHowever, bas byou bproduce bmore band bmore bthe
bop bcost bincreases.
Why bis ba bmarket beconomy b'self-organizing' b? b- bcorrect banswers✔✔When beveryone
bpursues btheir bown binterests, ba bspontaneous b'order' bforms.
