Virtual AR Module 3 Review Question Preview (ID: 17365)


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Marginal Cost is the cost of producing 100 more items.
a) True
b) False
c)
d)

If a person chooses to buy a pair of shoes instead of a new jacket, what does the jacket represent in economic terms?
a) Opportunity Cost
b) Trade-off
c) Decision
d)

The need to make a choice arises because____________.
a) People need to share their resources
b) Everything that exists is limited
c) Some things are not limited
d)

The benefit gained when a choice has been made is a/ an ___________.
a) incentive
b) prize
c) benefit
d)

Deciding between soda and water at dinner is considered to be a ________ decision.
a) Trade-off
b) Opportunity Cost
c) Choice
d)

If a person is making a decision, they are looking at the two ___________.
a) options
b) alternatives
c)
d)

Consuming an extra good or service is considered to be a _________________.
a) Marginal Cost
b) Marginal Benefit
c)
d)

Marginal Cost and Benefit are evident in every either or decision.
a) True
b) False
c)
d)

If a person was able to purchase more of a good than expected, it would be considered to be a__________ ________________.
a) Marginal Cost
b) Marginal Benefit
c)
d)

Second best alternative, the option not chosen is the _______ ______ of the situation.
a) Opportunity Cost
b) Trade-off
c)
d)

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