When the government implements welfare programs, which of the following is likely to occur?

The word "economy" comes from the Greek word oikonomos, which means
"one who manages a household"

The overriding reason as to why households face many economic decisions is that
resources are scarce 

Economics is defined as the study of
how society manages its scarce resources 

Economics deals primarily with the concept of:
scarcity

Which of the following is an example of something economists study?
all of the above are correct 

Which of the following products would be considered scarce?
all of the above 

Scarcity exists when
there is less of a good or resource available than people wish to have 

In most societies, resources are allocated by
the combined actions of millions of households and firms 

The adage, "There is no such thing as a free lunch," is used to illustrate the principle that
people face tradeoffs

Which of the following statements best represents the principle represented by the adage, "There is no such thing as a free lunch"?
Andrew must decide between going to Florida or Brazil for spring break 

When the government implements welfare programs, which of the following is likely to occur?
equity is increased and efficiency is decreased 

A tradeoff exists between a clean environment and a higher level of income in that
laws that reduce pollution raise costs of production and reduce incomes 

The opportunity cost of an item is
what you give up to get that item