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

If North Korea is currently producing at efficiency,and it proceeds to increase the size of its military,then,as long as nothing else changes,its

The essential feature of the market mechanism is the price signal.

Every time we use scarce resources in one way,we give up the opportunity to use them in other ways.

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

Which of the following is an assumption under which the production possibilities curve is drawn?

Use the following figure to answer questions: Figure 1.5 -Using Figure 1.5,if an economy has the capacity to produce represented by PP2,then point E represents

Which of the following events would allow the production possibilities curve to shift outward?

All output combinations that lie outside a production possibilities curve are attainable with available resources and technology.

A mixed economy

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. - On the basis of your calculations in Table 1.1,you may infer that the law of increasing opportunity costs applies to

Output combinations that lie inside the production possibilities curve are characterized by efficient use of resources.

According to the law of increasing opportunity costs,

Which of the following is true when an economy is producing efficiently?

The basic factors of production include

Factors of production are

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

The book Wealth of Nations was written by

One World View article is titled "Chronic Food Shortage Shows Despite Efforts by North Korea to Hide It." If North Korea reduces the size of its military and produces more food,this is most consistent with

Use the following figure to answer questions: Figure 1.4 -Which of the following is true about the combination of plasma televisions and MP3 players represented by point F in Figure 1.4?

Given that resources are scarce,