Question

True or False: 1. SUVS are more fin to drive than sedans" is an example ofa positive statement 2. The statement "You passed the test because you studied hard" is an example of "cause and effect." 3. Absolute advantage comes from lower opportunity cost 4 If a borrowercan't afford to keep up the mortgsegepsyments and defaults, the borrower is pursuing private interest. 5. In the Us the richest 25 % of the population makes more money than the poorest 75 % . 6. Tomake a rational choice, a person compares the extra benefits of one more unit to the extra costs of one more unit What is the reason that all economicissues and problems occur? Human wantsexceed the resources available to satisfythem. Powerful govemments are able to control production and consumption. All nations use some form of money to buy and sell goods and services C Humans are always wasteful and inefficient in production and consumption. People seek only the ir own self-interest 8)What is NOT true about rational choice? C It can result in different decisions fordifferentindividus is. It involves comparing costs and benefits. C It is a choice that uses the available resources to best achieve the objective of the person making the choice. It might turn outnotto havebeen the best choice after theevent It is the same for all individuals.

Answer 1

1.

False

It is the example of normative statement.

2.

True

Studying hard is the cause that made the effect of passing the test.

3.

False

It comes from the higher efficiency than the others.

4.

True

Making default is individualistic in nature, so it is a private interest.

5.

True

It is more than 50%.

6.

True

It is marginal principle of economics.

Pl. repost other unanswered questions for their proper answers!