1 which of the following makes trade offs necessary a...

1. Which of the following makes trade-offs necessary? A. Diminishing marginal returns. B. Diminishing marginal utility. C. Limited resources and unlimited wants and needs. D. Different opportunity costs. E. An excess of supply. 2. Which of the following is an example of a non-rival good? A. Fireworks for everyone in their sight line. B. A toll road. C. A glass of water. D. Seats at a movie theater. E. An unclaimed spot on a beach. 3. The government of country X owns the means of production, determines incomes and investment, and decides what goods should be produced and how they should be traded. What economic system does country X have? A. Command. B. Capitalist. C. Entrepreneurial. D. Free enterprise. E. Mixed.

Transcript

00:01 So here we've got three different multiple choice questions.

00:03 I'll try to walk through each of them in turn, though this might be a little bit lengthy.

00:07 So why are tradeoffs necessary? a, diminishing returns or diminishing marginal returns.

00:13 This is wrong.

00:15 Diminishing marginal returns says that as you get more and more and something, it becomes less and less valuable to you.

00:22 If you have a little food, the food is very valuable.

00:26 As you get more and more and more food, each unit of food is less and less valuable.

00:30 You still want as much as possible.

00:32 So this is this is not about trade ops, right? b, again, this is the same thing instead of diminishing returns, diminishing utility, which is, you know, basically identical.

00:45 Returns is how much you produce of something, like if you get more and more farmland, how much many crops you can get out of it.

00:52 The utility is how you feel about the crops.

00:54 This is also just, these are just described properties and functions.

00:59 They don't say anything about tradeoffs.

01:01 See, this is obviously it.

01:04 Limited resources, right? we don't have an infinite amount of resources.

01:10 We only have a limited amount of resources because there is a limit on resources that we cannot satisfy everything we might want because we cannot satisfy everything we might want.

01:20 There's tradeoffs, d, opportunity costs.

01:24 This is again sort of meaningless.

01:26 There are opportunity costs because there are limited resources, right? c implies d.

01:35 And the fact that opportunity costs are different doesn't say anything in particular.

01:40 E, so this one's also wrong.

01:43 And e excess supply.

01:46 This is just garbage.

01:48 They're running out of reasonable answers here.

01:51 Excess supply, well, for starters, doesn't exist when markets clear.

01:55 And in many markets there are not, there is not excess supply.

01:59 Excess of the existence of excess supply does not make tradeoffs necessary, right? non -rival good for two...