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Question 6: Opportunity cost includes only explicit or out-of-pocket monetary costs

Economics

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Question 6: Opportunity cost includes only explicit or out-of-pocket monetary costs.

True

False

Question 7:A rational consumer will purchase additional quantities of a good or service as long as the __________ utility exceeds the opportunity cost.

i- Group of answer choices

ii- total

iii- marginal

4- advertised

Question 8: In the budget constraint framework, sunk costs ________ be factored into current decisions.

i- Group of answer choices

ii- should

iii- should not

Question 9: The production possibilities (PPF) model shows an inverse relationship between the amount of two production options - for example, health care and education.

True

False

Question 10: The law of diminishing returns states that as additional increments of resources are devoted to a certain purpose, the marginal benefit from those additional investments will:

i- increase.

ii- decline.

iii- remain constant.