Answers to Quizzes and Final Exam

Answers to Quizzes

Chapter 1

1. False.

Economic resources include land (actual land or other natural resources, such as energy or timber), labor (people’s work), capital (tools and other things that are produced and used to produce goods and services), and entrepreneurship/technology (the know-how to combine these resources to produce goods and services). Money is not actually an economic resource; it is merely used to facilitate the exchange of these resources.

2. True.

Opportunity cost, or the cost of the next best alternative or what is given up to get something, may be different from the monetary price. For instance, if you had to wait in line for five hours to buy a Ferb, the true cost of a Ferb would ...

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