Question

which of the following shows an example of opportunity cost? *
a. buying a video game instead of saving the money for a new phone
b. making unlimited choices without trade - offs
c. having unlimited resources
d. none of the above

in the u.s. free enterprise system, businesses compete mainly through: *
a. government control
b. price and quality
c. eliminating consumers
d. removing competitors by law

which of the following is an example of capital as a factor of production? *
a. land
b. tools and machines
c. labor force
d. natural resources

Explanation:

1. Opportunity cost is the value of the next - best alternative forgone. Buying a video game instead of saving for a new phone means giving up the opportunity of having a new phone, which is an example of opportunity cost.
2. In the U.S. free - enterprise system, businesses compete mainly through price and quality to attract customers. Government control is minimal, eliminating consumers is unethical and illegal, and removing competitors by law is not a common or legal way of competition.
3. Capital as a factor of production includes tools and machines used in the production process. Land is a natural resource, the labor force is labor, and natural resources are a different factor of production.

Answer:

1. A. Buying a video game instead of saving the money for a new phone
2. B. Price and quality
3. B. Tools and machines