Question 1 2 pts To say that there is a scarcity of gold mea

Question 1 2 pts To say that there is a scarcity of gold means that: there is not enough gold to satisfy people\'s demand for it at a zero price. gold is very expensive. gold prices will fall in the future. there are very few substitutes for gold. the demand for gold is changing. Question 2 2 pts An example of an opportunity cost is the time you forgo to eat a \"free lunch.\" True False

Solution

Ans:

1) there is not enough gold to satisfy people\'s demand for it at a zero price.

scarcity means quantity of goods available is insufficient to meet people\'s wants.scarcity of gold means there is not enough gold to satisfy people\'s demand for it at a zero price.

2) True

Opportunity cost is the loss of other alternatives when one alternative is choosen.

3) the maximum amount of two goods that can be produced with existing resources.

The point on the production possibilities frontier represent that the economy is efficiently producing the goods and services.It also means the maximum amount of two goods that can be produced with existing resources.