Unit 1

Question 1

goat milk business

Answer 1

a resource

Question 2

ppf curve bow outward

Answer 2

right

Question 3

opportunity cost of producing airplanes instead of ships

Answer 3

0.5 ships

Question 4

public service

Answer 4

roads and highways

Question 5

service by the govt.

Answer 5

roads

Question 6

which of the following occurs when consumer interest in purchasing a product rapidly decreases

Answer 6

high quantity of product

Question 7

how do firms solve the problem of an economic surplus

Answer 7

decrease prices to market equilibrium

Question 8

what are businesses within the producer surplus area willing to do

Answer 8

produce less for a lower price

Question 9

expenditure

Answer 9

wages

Question 10

supply decreases

Answer 10

shifts left

Question 11

why does production of one good require a sacrifice of another good

Answer 11

different goods require similar factors of production