In a __________________________, most economic decisions about what to produce, how to produce it and for whom to produce it are made by buyers and sellers.

Refer to the table in the previous question.  . A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student’s time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:

When most people want to know the cost of an item or a service, they look for a price tag. When economists want to determine cost, they go one step further. They use the idea of opportunity cost. Explain the concept of opportunity cost and illustrate with an example.  Remember to use your own words.  Your example can be about you or about a situation you see around you. 

Picture2.png At Point A in the production possibilities graph shown aove, the economy:

Refer to the graph in the previous problemWhen the economy moves from Point A to Point B in the diagram above:

Explain the Law of Diminishing Returns and illustrate with an example that is relevant to you.  Remember to use your own words.

The general pattern that consumption of the first few units of any good tends to bring a higher level of________________ to a person than consumption of later units is a common pattern.

Philosophers draw a distinction between__________________, which describe the world as it is, and normative statements, which describe how the world should be.

Attending college is a case where the ________________ exceeds the monetary cost. 

the lesson of ________________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options