The Set of Mechanisms and Institutions That Resolve the Basic

question 143

Multiple Choice

The set of mechanisms and institutions that resolve the basic economic questions is called the

• A)economic system
• B)production possibilities dilemma
• C)business resolution device
• D)absolute advantage determination
• E)comparative advantage determination

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Definitions:

Opportunity Cost

Foregoing the chance to benefit from other alternatives when one choice is made.

Lottery Tickets

Pieces of paper or digital receipts purchased in hopes of winning a large sum of money through a process of random selection.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for every possible quantity of another good produced, given available resources and technology.

Decreasing Opportunity Costs

A situation in which the opportunity costs of resources decrease as more of a good is produced.