Question

question 7
the value of something with undertaking an action is called
□ opportunity cost
□ wait loss
□ marginal cost
□ forgone cost

question 8
which of the following is a positive economic statement?
■ scarcity necessitates that people make trade - offs
○ people should not buy suvs.
○ the government should mandate electric automobiles.
○ foreign workers should not be allowed to work for lower wages than the citizens of a country.

Explanation:

Question 7 (assuming the question is about the cost related to undertaking an action, likely in Economics (Business subfield)):

To solve this, we recall economic cost concepts:

• Opportunity cost: Cost of next best alternative forgone.
• Sunk cost: Already incurred, irrecoverable cost.
• Marginal cost: Cost of producing one more unit (or undertaking one more action).
• Forgone cost: Similar to opportunity cost but less precise term.

The cost associated with undertaking an action (marginal cost is about the additional cost of an action). But if the question was about the cost of the action's next - best alternative, it's opportunity cost. However, if it's the additional cost of the action, it's marginal cost. Since the options include marginal cost, and if the question is about the cost of doing one more unit of an action, the answer is marginal cost. But since the original question text is a bit garbled, assuming the standard question "The cost of the next - best alternative to an item or action is called", the answer is opportunity cost. But from the given options, if the question is "The cost associated with undertaking an action is called", marginal cost is about the additional cost of the action.

Question 8:

A positive economic statement is a statement that can be tested, verified, or refuted with data. It is about "what is" rather than "what should be".

• "Scarcity necessitates that people make trade - offs": This is a fact about economics. Scarcity (limited resources, unlimited wants) means people have to choose between alternatives (trade - offs), and this can be analyzed and verified.
• "People should not buy SUVs": This is a normative statement (about what people ought to do).
• "The government should mandate electric automobiles": Normative (about what the government should do).
• "Foreign workers should not be allowed to work for lower wages than the citizens of a country": Normative (about what should be the case regarding foreign workers' wages).

Opportunity cost is the cost of the next - best alternative forgone when an action is undertaken. If the question is about the cost of the alternative to an action, opportunity cost is the correct concept.

Positive economic statements describe "what is". "Scarcity necessitates that people make trade - offs" is a testable economic fact. The other options are normative (about "what should be").

Answer:

Question 7 (assuming the question is about opportunity cost):