b.
False
ANSWER:
False
273. "A tax cut will lead to higher inflation" is an example of a normative economic statement.
a.
True
b.
False
ANSWER:
False
274. Most disagreements among economists stem from positive issues.
a.
True
b.
False
ANSWER:
False
275. Tractors, shovels, copy machines, and computer programming expertise are all examples of scarce resources.
a.
True
b.
False
ANSWER:
True
276. Since resources are abundant, we do not have to make choices about their use.
a.
True
b.
False
ANSWER:
False
277. Human capital consists of computers, tools, and equipment owned by private individuals.
a.
True
b.
False
ANSWER:
False
278. An entrepreneur organizes the other factors of production and bears the business risk.
a.
True
b.
False
ANSWER:
True
279. Scarcity is a problem faced by all but the wealthiest of citizens.
a.
True
b.
False
ANSWER:
False
280. If Kinsey gives up a job in which she earns $54 000 per year in order to go to college full-time, her forgone income is part of the opportunity cost of going to college.
a.
True
b.
False
ANSWER:
True
281. The opportunity cost of a decision is the value of the best forgone alternative.
a.
True
b.
False
ANSWER:
True
282. The opportunity cost of a decision is the sum of the value of all of the available alternatives that were not chosen.
a.
True
b.
False
ANSWER:
False
283. The opportunity cost of attending college is likely higher for a high-school graduate who leaves a job grilling hamburgers than it is for a high-school dropout who leaves a job working as a computer network administrator.
a.
True
b.
False
ANSWER:
False
284. Rational individuals act to advance their own self-interest; therefore, charitable giving must constitute irrational behaviour.
a.
True
b.
False
ANSWER:
False
285. Marginal cost is the additional cost incurred as the result of producing one additional unit of a good or service.
a.
True
b.
False
ANSWER:
True
286. When considering whether to consume a second slice of pizza, an individual is following marginal thinking when they compare the total cost of consuming both the first and second slices with their total benefit before making a decision.
a.
True
b.
False
ANSWER:
False
287. Implementing stricter automobile-emissions controls after determining that the benefits of increased air quality outweigh the costs of pollution reduction is consistent with the rule of rational choice.
a.
True
b.
False
ANSWER:
True
288. Economists believe that the stiff penalties for drunk driving do not affect the decision making of those who drive drunk.
a.
True
b.
False
ANSWER:
False
289. A carbon tax is a positive incentive.
a.
True
b.
False
ANSWER: