Author Question: Economic growth can be illustrated by an outward shift of the PPC. a. True b. False Indicate ... (Read 82 times)

nenivikky · **on:** Jun 30, 2018

Economic growth can be illustrated by an outward shift of the PPC.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Explain why each of the following is considered an economic issue:
a. whether to spend Saturday afternoon at a football game
b. obtaining tickets to a U2 concert
c. your university considers your application for one of 25 available scholarships

ririgirl15 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

True

Answer to Question 2

Each of the following are economic issues that illustrate scarcity and the necessity of making choices:

a. The decision as to whether to spend Saturday afternoon at a football game involves weighing the marginal expected benefit versus the marginal expectedcost. There is an opportunity cost associated with going to the football game since you could spend the time in other ways, such as studying or working.
b. Attending a U2 concert requires a sacrifice of both money and time. Individuals face a tradeoff between what could be done with the time and the dollars expended acquiring tickets and attending the concert.
c. Since there are a limited number of scholarships and many students who would wish to receive one, the university must decide to whom to allocate these scarce scholarship resources.