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

Explain the difference between macroeconomics and microeconomics.Give examples of each.

Explain the concept of inefficiency in terms of a production possibilities curve.

A technological advance would best be represented by

According to the law of increasing opportunity costs,

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 A?

In terms of the production possibilities curve,inefficiency is represented by

The market mechanism may best be defined as

Scarcity results when available resources cannot satisfy all desired uses of those resources.

The production possibilities curve illustrates which two of the following essential principles?

Economic models are used by economists to

Why do opportunity costs increase as society produces more of a good?

Microeconomics is concerned with issues such as

Which of the following is not a factor of production?

The "guns versus butter" dilemma that all nations confront is 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. On the basis of your calculations in Table 1.2, -what is the opportunity cost of producing at point B rather than point C?

Which of the following is not one of the three core economic issues that must be resolved?

In economics,scarcity means that

The opportunity cost of studying for an economics test is

The points on a production possibilities curve show

Economic growth would best be represented by a