Economists Argue That

question 67

Multiple Choice

Economists argue that

• A) there is an opportunity cost associated with all decisions.
• B) there is an opportunity cost associated only with decisions involving money.
• C) economic decisions have opportunity costs but other decisions do not.
• D) decisions do not have opportunity costs.
• E) there is an opportunity cost for some economic decisions.

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Definitions:

Supply

Represents the total amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Perfectly Elastic

A situation where the demand or supply for a good is extremely sensitive to changes in price, depicted as a horizontal line on a graph.

Relatively Elastic

Describes a situation where a small change in price leads to a relatively larger change in the quantity demanded or supplied of a good or service.

Demand for Gasoline

Describes how much gasoline consumers want to buy at various prices, often influenced by factors like income and price of substitutes.