Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC).
a. True
b. False
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QUESTION 2Marginal analysis examines the effects of additions to or subtractions from a current situation.
a. True
b. False
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QUESTION 3The basic approach in marginal analysis is to compare a policy's total benefits with its total costs.
a. True
b. False
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QUESTION 4Every economic choice has an opportunity cost.
a. True
b. False
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QUESTION 5The opportunity cost of attending a movie is the purchase price of a ticket.
a. True
b. False
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QUESTION 6The opportunity cost of producing a good or service is the good or service that is foregone by choosing to produce another good with the same resources in a given period of time.
a. True
b. False
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QUESTION 7An opportunity cost is the highest valued alternative foregone whenever one chooses an alternative.
a. True
b. False
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QUESTION 8When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is often not taken into consideration when indeed it should be.
a. True
b. False
Indicate whether the statement is true or false
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