True or false: scarcity and choice

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Sunk costs should be ignored in a current decision.

2. Statement is true

   No

   Statement

   Marginal utility rises as you consume more of a good.

3. Statement is true

   Yes

   Statement

   Scarcity affects rich and poor societies alike.

4. Statement is true

   No

   Statement

   A society must produce every good it consumes.

5. Statement is true

   No

   Statement

   Most real choices are all-or-nothing.

Instructions

Tap True or False for each statement.

Explanation