Exam 1: Economics: the Core Issues Appendix: Using Graphs

Which of the following will cause the production possibilities curve to shift inward?

Macroeconomics focuses on the performance of

Which of the following is an example of government failure?

Use the following figure to answer questions: Figure 1.4 1 -In Figure 1.4,a shift of the production possibilities curve from PP1 to PP2 could be caused by

The doctrine of laissez faire is based on the belief that

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. -Refer to Table 1.2.In the production range of 20 to 35 B-1 bombers,the opportunity cost of producing 1 more B-1 bomber is

Adam Smith's invisible hand is now called

The slope of a production possibilities curve is positive.

Use the following figure to answer the questions: Figure 1.7: -The cost of producing at point D rather than point J is :

Which of the following can be used to correct market failure?

Use the following figure to answer the questions: Figure 1.5 -if an economy is currently producing on PP2,which of the following would shift the production possibilities curve toward PP1?

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. -The lowest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is

When the invisible hand does not produce optimal outcomes for the economy,there is evidence of

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. - On the basis of your calculations in Table 1.3,in the production range of 21 to 23 brushes the opportunity cost of producing more comb in terms of brushes is

Which of the following is not a basic decision that all nations must confront?

Use the following figure to answer questions: Figure 1.3 -Which of the following is true about the combination of mops and brooms represented by point E in Figure 1.3 and using PP1?

If market signals result in pollution beyond the optimal level,then

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. On the basis of your calculations in Table 1.2 -what is gained by producing at point B rather than point C?

Critics of government regulation argue that government interference in the marketplace stifles the animal spirits of entrepreneurship.

Opportunity cost is a theoretical concept with no practical application.