Question

quiz information
page 1:
question 5 (2 points)
when economists say that a good provides utility, what do they mean?
a) the good is a necessity for survival.
b) the good has high production costs.
c) the good contributes to the consumers well - being or happiness.
question 6 (2 points)
what does a point below the production possibilities curve represent?
a) efficient use of resources.
b) inefficient use of resources.
c) an unattainable level of production.

Explanation:

For Question 5, utility in economics refers to the satisfaction or well - being a consumer derives from consuming a good. So when economists say a good provides utility, they mean it contributes to the consumer's well - being or happiness. For Question 6, points below the production possibilities curve represent an inefficient use of resources as the economy could be producing more of one or both goods without using additional resources.

Answer:

Question 5: c) The good contributes to the consumer's well - being or happiness.
Question 6: b) Inefficient use of resources.