Economics is the social science concerned with the best use of scarce resources to achieve maximum satisfactio?

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1. Economics is the social science concerned with the best use of scarce resources to achieve maximum satisfaction of economic wants. T
2. The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment. T
3. In a competitive market economy, firms and resource suppliers will seek to further their own self-interest and at the same time, as if guided by an "invisible hand," they will promote the public interest. T
4. According to the circular flow model of the market system, firms get their ability to pay for their costs of production from the revenues that they receive for their products. T
5. If the government pre-sets a price that turns out to be above the actual equilibrium price, a surplus will develop in the market. T
6. An increase in demand accompanied by an increase in supply will increase the equilibrium quantity but the effect on equilibrium price will be indeterminate. F
7. If the percentage change in quantity demanded is less than the percentage change in price, then demand is said to be elastic F
8. We would expect the income elasticity of demand for steak to be positive, and that for hamburger to be negative. F
9. Whenever there are supply-side market failures in the form of costs that suppliers do not have to face, then there will be overproduction of the output. F
10. An effective antipollution policy from the economic perspective requires that all pollution be eliminated and banned. F
11. Real GDP can change due to changes in the price level. T
12. Buying 100 shares of Google stock would be an example of economic investment. F
13. U.S. gross domestic product (GDP) measures the market value of all goods and services produced by Americans in one year. T
14. Disposable income includes transfer payments like Social Security benefits and unemployment benefits. T
15. If nominal GDP in one year is $5,000 billion and the price index is 135, then the real GDP that year would be $3,704 billion. T or F (not sure)
16. The so-called "Rule of 70" is a formula for finding the approximate number of times that a value will double in a period of 70 years. T or F (not sure)
17. There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy. T
18. Anyone who is not employed is classified as unemployed in the Bureau of Labor Statistics data on the labor force. F
19. Deflation is when the inflation rate turns negative. T
20. Cost-push inflation increases real output and employment. F