Exam 1: B: Limits, Alternatives, and Choices

An economy cannot produce at a point outside of its production possibilities curve because human material wants are insatiable.

Normative statements are expressions of facts.

Economic resources are also called:

Refer to the above diagram.The combination of computers and bicycles shown by point F:

The above data suggest that:

The linear equation for line (1) on the above graph is:

The law of increasing opportunity costs is reflected in a production possibilities curve which is:

(The following economy produces two products.) Production Possibilities Table Refer to the above table.A change from possibility C to B means that:

When an economy is operating with maximum efficiency, the production of more of commodity A will mean the production of less of commodity B because:

Which of the following statements is correct?

Choices entail marginal costs because resources are scarce.

The individuals and society both face an economic problem.This problem arises from the fact that:

Any point inside the production possibilities curve indicates:

Refer to the above diagram.Curve B is a:

If we say that two variables are directly related, this means that:

Production possibilities (alternatives) Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:

Purposeful behaviour suggests that:

The production possibilities curve has:

The following production possibilities table represents an economy which is producing two products, tanks and autos.Refer to the table, in moving from possibility C to D, the cost of a tank in terms of autos is:

The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as: