5. The problem of determining what goods and services society should produce:

A.exists because we can produce more than we need or want.
B.exists because there are not enough resources to provide all the goods and services that people want to purchase.
C.would not exist if all goods and services were scarce.
D.would not exist if government owned all of the resources.
(I picked B)

8. When markets fail: (Points: 3)
A- government intervention may help.
B- the market realizes the maximum possible gains from trade given the available resources.
C- there may still be an efficient allocation of resources.
D- no goods and services are produced.
(I picked A.)

9. The models used in economics:
A- are usually limited to variables that are directly related.
B-are essentially not reliable because they are not testable in the real world.
C-are of necessity unrealistic and not related to the real world.
D-emphasize basic relationships by abstracting from complexities in the everyday world.
(I picked D)
11. The fact that a society's production possibilities curve is bowed out or concave to the origin of a graph demonstrates the law of:
A-increasing opportunity cost.
B-decreasing opportunity cost.
C-constant opportunity cost.
D-concave opportunity cost.
(I picked B)

15. Trade can be beneficial to an economy because:
A-it results in a more efficient use of the combined resources of some of the trading countries, even though it reduces efficiency in others.
B-more goods and services can be obtained at lower opportunity cost.
C-it prevents specialization in those activities in which countries have a comparative advantage.
D-it prevents unemployment.
(I picked B)

17. The primary difference between a change in demand and a change in the quantity demanded is: (Points: 3)
A-a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
B-a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve.
C-both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
D-both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
( I picked B)

24. A shift to the left of a supply curve is caused by: (Points: 3)
A-an increase in the number of sellers.
B-a technological improvement.
C-an increase in the cost of an input.
D-an increase in the number of buyers.
(I picked C)

5) I agree.

8) I agree.
9) I agree.
11) I think A.
15) I agree.
17) I agree.
24) I agree.

For question 5, you chose answer B - exists because there are not enough resources to provide all the goods and services that people want to purchase. This is correct.

For question 8, you chose answer A - government intervention may help. This is correct.

For question 9, you chose answer D - emphasize basic relationships by abstracting from complexities in the everyday world. This is correct.

For question 11, you chose answer B - decreasing opportunity cost. However, the correct answer is A - increasing opportunity cost. When the production possibilities curve is bowed out or concave to the origin, it demonstrates that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases.

For question 15, you chose answer B - more goods and services can be obtained at lower opportunity cost. This is correct.

For question 17, you chose answer B - a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve. This is correct.

For question 24, you chose answer C - an increase in the cost of an input. This is correct.

For question 5, the question is asking about the problem of determining what goods and services society should produce. The correct option is B - exists because there are not enough resources to provide all the goods and services that people want to purchase. This is because resources are limited, but people have unlimited wants and desires, creating a scarcity problem.

To answer this question, one must understand the concept of scarcity and how it relates to the production of goods and services. Scarcity refers to the limited availability of resources compared to unlimited wants and needs. In economics, resources include natural resources, labor, capital, and entrepreneurship. Because resources are limited, society must make choices about what to produce to satisfy the most pressing wants and needs. This is known as the problem of allocation.

In question 8, the question is about what happens when markets fail. The correct option is A - government intervention may help. This is because when markets fail to efficiently allocate resources and produce optimal outcomes, government intervention can help correct the market failures and improve overall economic welfare.

To understand this question, one must know about market failures. Market failures occur when the market does not achieve an optimal allocation of resources or fails to produce the maximum possible gains from trade. Examples of market failures include externalities, imperfect competition, and public goods. In such cases, government intervention, through regulations, taxes, subsidies, or public provision, can help improve efficiency and address the market failures.

For question 9, the question is about the models used in economics. The correct option is D - emphasize basic relationships by abstracting from complexities in the everyday world. Economic models are simplifications of real-world situations and are designed to focus on specific relationships or concepts. These models often abstract from the complexities of the real world to highlight the fundamental economic principles and relationships.

To understand this question, one must know about economic models and their purpose. Economic models are tools used by economists to analyze and understand economic phenomena. These models typically involve simplifications, assumptions, and mathematical or graphical representations to help explain economic concepts and theories.

For question 11, the question is about the law demonstrated by a society's production possibilities curve being bowed out or concave to the origin of a graph. The correct option is A - increasing opportunity cost. This law states that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases.

To understand this question, one must know about the production possibilities curve and the concept of opportunity cost. The production possibilities curve shows the maximum possible combinations of goods and services that can be produced given the available resources and technology. The curve is bowed out or concave to the origin because resources are not perfectly adaptable to producing different goods, resulting in increasing opportunity costs.

For question 15, the question is about the benefits of trade to an economy. The correct option is B - more goods and services can be obtained at a lower opportunity cost. Trade allows countries to specialize in producing goods and services that they have a comparative advantage in, leading to increased efficiency and higher overall production.

To answer this question, one must understand the concept of comparative advantage. Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country. By trading with other countries, countries can obtain goods and services at a lower opportunity cost than if they were to produce everything domestically, resulting in increased overall production and efficiency.

For question 17, the question is about the difference between a change in demand and a change in the quantity demanded. The correct option is B - a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. A change in quantity demanded refers to a movement along the demand curve caused by a change in price, while a change in demand refers to a shift in the entire demand curve caused by factors other than price.

To understand this question, one must be familiar with the concept of demand and how it is represented graphically. The demand curve shows the relationship between the price of a good and the quantity demanded by consumers. A change in quantity demanded is represented by a movement along the demand curve, while a change in demand is represented by a shift of the entire demand curve.

For question 24, the question is about the causes of a leftward shift of a supply curve. The correct option is C - an increase in the cost of an input. When the cost of an input used in production increases, it reduces the profitability of producing the good and leads to a decrease in supply, causing a leftward shift of the supply curve.

To understand this question, one must know about the factors that can cause a change in supply. Changes in supply are represented by shifts of the supply curve. Factors that can cause a shift in supply include changes in the cost of inputs, changes in technology, changes in the number of sellers, and changes in expectations.