Exam 2: Economic Tools and Economics Systems

Janis mows the lawn in 1 hour and types a paper in 1 hour.Kristen mows the lawn in 2 hours and types a paper in 1 hour.Which of the following statements is true?

Exhibit 2-4 In Exhibit 2-4, if all the economy's resources are used efficiently to produce good B, then the economy is at point

In one week, Mohammed can knit 5 sweaters or bake 240 cookies.In one week, Tetah can knit 15 sweaters or bake 480 cookies.In this example,

The "division of labor" refers to

In one week, Mohammed can knit 5 sweaters or bake 240 cookies.The opportunity cost per sweater for Mohammed is

Expenses for room and board

Which of the following cannot be determined from a nation's position relative to its production possibilities frontier?

Opportunity cost is the difference between the benefits and the costs of a choice.

Which economic concept does the expression "time is money" reflect?

It is possible for one person to have a comparative advantage in the production of all products?

Opportunity cost is defined

Exhibit 2-2 According to Exhibit 2-2, Hans and Maria would be better off if

Exhibit 2-4 Point g in Exhibit 2-4 is efficient because

It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything.

Exhibit 2-4 In Exhibit 2-4, if all the economy's resources are used efficiently to produce good A, then the economy is at point

Opportunity cost is objective; therefore, its value does not change as circumstances change.

When faced with a choice, a person assesses alternatives as long as the expected marginal __________ of gathering more information about the person's opinions __________ the expected marginal __________.

Which economic question does the decision to produce butter instead of guns answer?

Exhibit 2-10 Refer to Exhibit 2-10.Which of the graphs best illustrates the impact on the production possibilities frontier of a decrease in unemployment?

A person who can produce more of a good than another person is said to possess a comparative advantage.