Question

Good economic decision makers

a	focus on calculating the benefit of an action, but not the costs.

b	focus on the monetary costs and rewards of an action.

c	carefully measure the costs of an action, but not the benefits.

d	do not have to consider alternatives because decision making is instinctive for them.

e	allocate resources by comparing all costs and the benefits of an action.

Which of the following cannot be analyzed in the Production Possibilities Frontier model?

a	Economic tradeoffs

b	Changing prices of goods and services

c

Scarcity

d	Opportunity costs

e

Growth

Use the table for the question(s) below.

Combination	A	B	C	D	E	F	G
Aircraft carriers	6	5	4	3	2	1	0
Health clinics	0	2000	3500	4500	5300	5800	6000

In the table above, opportunity costs

a	of aircraft carriers are constant as more aircraft carriers are produced, but increase as more health clinics are produced.

b	of aircraft carriers increase as more aircraft carriers are produced, and opportunity costs of health clinics increase as more health clinics are produced.

c	of aircraft carriers are constant as more aircraft carriers are produced.

d	of health clinics decrease as more health clinics are produced.

e	of aircraft carriers decrease as more aircraft carriers are produced, but increase as more health clinics are produced

Answer 1