"The Resources Now Going into the War on Terrorism and into Improved

question 191

Multiple Choice

"The resources now going into the War on Terrorism and into improved airport security would save more lives if they were invested in medical research." This statement most clearly reflects which of the following?

• A) The best test of an economic theory is its ability to predict.
• B) There is no such thing as a free lunch--the use of scarce resources always has an opportunity cost.
• C) selfishness; if people were not selfish, we could have more of everything.
• D) The value of goods can be determined objectively.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at prevailing prices.

Intercepts

Points where a line or curve crosses the axes on a graph, typically used to describe the starting points of equations in coordinate geometry.

Satisfaction Level

A measure of how well goods or services meet or surpass customer expectations.

Quantity

Quantity refers to the amount or number of units of a product or service offered for sale or consumed.