QUESTION 7
Which of the following statements about the economic decisions consumers, firms, and the government have to make is false?
Each faces the problem of scarcity which necessitates trade-offs in making economic decisions.
Only individuals face scarcity; firms and the government do not.
Governments face the problem of scarcity in making economic decisions.
Both firms and individuals face scarcity.
QUESTION 8
Damian shares a small food truck with his sister. His share of the expenses is $500 per month. He has decided to get his own, newer
food truck which he will not have to share with anyone. His expenses for the newer truck are $1,400 per month. Damian is as
rational as any other person. As an economics major, you rightly conclude that
Damian cannot afford the newer truck and will have to go back to sharing a truck with his sister.
Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900.
Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $1,400.
the cost of having one's own truck outweighs the benefits.
