c. all resources are privately and prices are used to coordinate economic activity d. resources are both publicly and privately and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity ANS: D PTS: 1 DIF: Hard NAT: Reflective Thinking LOC: The study of economics, and definitions of economics TOP: Mixed and Transitional Economies 187. When faced with a choice, a person assesses alternatives as long as the expected marginal _____ of gathering more information about the person’s opinions _____ the expected marginal _____. a. benefit, is less than, cost b. cost, exceeds, benefit c. benefit, exceeds, cost d. benefit, is greater than, benefit e. cost, is greater than, benefit ANS: C PTS: 1 DIF: Easy NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Opportunity Cost Is Subjective 188. The law of comparative advantage does not apply to a. entire nations b. natural resources like air and sunshine c. individuals d. firms e. regions of a country ANS: B PTS: 1 DIF: Easy NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Absolute Advantage versus Comparative Advantage 189. All of the following are evidence of specialization except a. a solo carpenter who builds a whole bedroom set b. restaurants that from subs to sushi c. the credits at the end of a movie d. professional mourners in Taiwan e. online sellers ANS: A PTS: 1 DIF: Moderate NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Specialization and Exchange 190. Just as resources are scarce for the individual, a. they are also scarce for the economy as a whole b. they are never scarce for the economy as a whole c. they are randomly abundant for other individuals d. there will be zero resources available for the economy as a whole e. the economy a is never faced with having to make rational choices about using resources ANS: A PTS: 1 DIF: Easy NAT: Analytic LOC: Understanding and applying economic models TOP: The Economy's Production Possibilities 191. A PPF will not shift because of an increase in
c. all resources are privately and prices are used to coordinate economic activity d. resources are both publicly and privately and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity ANS: D PTS: 1 DIF: Hard NAT: Reflective Thinking LOC: The study of economics, and definitions of economics TOP: Mixed and Transitional Economies 187. When faced with a choice, a person assesses alternatives as long as the expected marginal _____ of gathering more information about the person’s opinions _____ the expected marginal _____. a. benefit, is less than, cost b. cost, exceeds, benefit c. benefit, exceeds, cost d. benefit, is greater than, benefit e. cost, is greater than, benefit ANS: C PTS: 1 DIF: Easy NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Opportunity Cost Is Subjective 188. The law of comparative advantage does not apply to a. entire nations b. natural resources like air and sunshine c. individuals d. firms e. regions of a country ANS: B PTS: 1 DIF: Easy NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Absolute Advantage versus Comparative Advantage 189. All of the following are evidence of specialization except a. a solo carpenter who builds a whole bedroom set b. restaurants that from subs to sushi c. the credits at the end of a movie d. professional mourners in Taiwan e. online sellers ANS: A PTS: 1 DIF: Moderate NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Specialization and Exchange 190. Just as resources are scarce for the individual, a. they are also scarce for the economy as a whole b. they are never scarce for the economy as a whole c. they are randomly abundant for other individuals d. there will be zero resources available for the economy as a whole e. the economy a is never faced with having to make rational choices about using resources ANS: A PTS: 1 DIF: Easy NAT: Analytic LOC: Understanding and applying economic models TOP: The Economy's Production Possibilities 191. A PPF will not shift because of an increase in