1) Every society faces economic tradeoffs. This meansa.b.c.d.producing more of one good means less of another good can be produced.not everyone can have enough goods and services to survive.some people live better than others do.society’s output cannot be made available to all.2) Which of the following statements is false?a. Tradeoffs do not apply when consumers purchase a product for which there isexcess supply, such as a stock clearance sale.b. Every individual, no matter how rich or poor, is faced with making tradeoffs.c. Anytime you have to decide which action to take you are facing an economictradeoff.d. Economics is a social science that studies the tradeoffs we are forced tomake because of scarcity.3) Which of the following is not an example of an economic tradeoff that a firmhas to make?a.b.c.d.whether it should produce more of its product.whether it is cheaper to produce with more machines or with more workers.whether or not consumers will buy its products .whether to outsource the production of a good or service4) How are the fundamental economic decisions determined in Cuba?a. Primarily, the government decides because Cuba is a centrally plannedeconomy.b. These decisions are made by the country’s elders who have had much experience in answering these questions.c. Individuals, firms, and the government interact in a market to make theseeconomic decisions.d. The United Nations decides because Cuba is a developing economy.5) Which of the following correctly describes the relationship between economicefficiency and economic equity?a.b.c.d.