Question

question 7
the extra cost associated with undertaking an activity is called
○ opportunity cost.
○ net loss.
○ marginal cost.
○ foregone 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

• Opportunity cost is the cost of the next best alternative foregone, not the extra cost of an activity.
• Net loss is a financial loss over a period, not related to the extra cost of an activity.
• Marginal cost is defined as the extra (additional) cost associated with undertaking an additional unit of an activity.
• Foregone cost is not a standard term for the extra cost of an activity; it is similar to opportunity cost in some misuses but not the correct term here.

• Positive economic statements are factual, descriptive, and can be tested or verified. Normative statements are opinion - based, involving "should" or "ought to".
• "Scarcity necessitates that people make trade - offs" is a factual statement about the economic concept of scarcity and trade - offs, which can be analyzed and verified.
• "People should not buy SUVs", "The government should mandate electric automobiles", and "Foreign workers should not be allowed to work for lower wages than the citizens of a country" are all normative statements as they involve value judgments (using "should").

Answer:

C. marginal cost

Question 8