Exam 2: The Economic Problem: Scarcity and Choice

In economics, the term "investment" refers to the purchase of stocks and bonds.

Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow. Figure 2.2 -Refer to Figure 2.2. You correctly deduce that all resources are fully employed and there are no production inefficiencies if this economy is currently operating at a point

Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5 -Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4 -According to Figure 2.4, the optimal point for the economy is

Assume a society can produce either beer or wine. If the marginal rate of transformation of gallons of beer into gallons of wine is 0.5, then the opportunity cost of beer is

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4 -According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles

According to the theory of ________, specialization and free trade will benefit all trade partners, even when some are absolutely more efficient producers than others.

Which of the following is an act of economic "investment"?

A command economy is one in which a central government sets output targets, incomes, and prices.

Related to the Economics in Practice on p. 26: Based on the increase in the number of women in the labor force over the past 60 years, the opportunity cost of preparing a home-cooked meal

In a command economy, ________ establish(es) what will be produced and when, set(s) production goals, and make(s) rules for distribution.

When two people trade, one must lose for the other to win.

Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Figure 2.1 -Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to

Refer to the information provided in Table 2.2 below to answer the following question(s). Table 2.2 Molly Pete Avatar Desigrn 6 3 Tattoo Desigri 3 2 -Refer to Table 2.2. For Pete, the opportunity cost of designing three tattoos is ________ avatar designs.

Due to a mild winter, Florida experienced a bumper crop of oranges. This would best be represented by a(n)

Suppose you are deciding whether to spend your tax rebate check on a new iPod or a new digital camera. You are dealing with the concept of

Which of the following is not a resource as the term is used by economists?

The marginal rate of transformation is the slope of the production possibility frontier.

A poorly functioning government can do which of the following to an economy?

Periods of full employment correspond to