1) If an economy is operating at a point inside the production possibilities curve, it indicates that:
a) society's resources are being poorly utilized.
b) the production decisions are made by government.
c) unlimited resources must satisfy scarce desires of people.
d) there is a scarcity of resources relative to human wants.
I think the answer is a
2) When a society underallocates resources to the production of a good or service, it indicates that the:
a) marginal benefit is greater than the marginal cost.
b) marginal benefit is less than the marginal cost.
c) opportunity cost of production is increasing.
d) consumption of the product is decreasing.
I think it is b
3) In product markets:
a) households sell products to business firms.
b) households sell resources to business firms.
c) businesses sell resources to households.
d) businesses sell goods and services to households.
I think it is c
Any help or input will be greatly appreciated
a) society's resources are being poorly utilized.
b) the production decisions are made by government.
c) unlimited resources must satisfy scarce desires of people.
d) there is a scarcity of resources relative to human wants.
I think the answer is a
2) When a society underallocates resources to the production of a good or service, it indicates that the:
a) marginal benefit is greater than the marginal cost.
b) marginal benefit is less than the marginal cost.
c) opportunity cost of production is increasing.
d) consumption of the product is decreasing.
I think it is b
3) In product markets:
a) households sell products to business firms.
b) households sell resources to business firms.
c) businesses sell resources to households.
d) businesses sell goods and services to households.
I think it is c
Any help or input will be greatly appreciated