Exam 2: The Economic Problem: Scarcity and Choice

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 wine is

Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6 -Refer to Figure 2.6. Which of the following is most likely to shift the production possibility frontier from ppf^{2 to ppf1}?

During the Iraq War, many of Iraq's oil refineries were destroyed. This would best be represented by a

According to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs.

Capital, as economists use the term,

Production is the process by which

Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1 Krystal Mark Writing Poerss 8 12 Writing TV Cornnercials 2 4 -Refer to Table 2.1. To maximize total production,

Outputs in the production process are

Which of the following statements is true for a command economy?

Related to the Economics in Practice on p. 36: In the survey conducted by Esther Duflo and Abhijit Banerjee, the extremely poor were found to consume ________ of their budgets on weddings, funerals, and other festivals.

Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6 -Refer to Figure 2.6. An improvement in technology may be represented by a

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. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.

Things that have already been produced that are in turn used to produce other goods and services over time are called "capital."

In a laissez-faire economy

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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,

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 A. The opportunity cost of moving from Point A to Point B is the

In their pure forms, laissez-faire economies and command economies do not exist in the world.

The opportunity cost of investment in capital is forgone present consumption because

An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a small amount of capital goods and a large amount of consumer goods. This is most likely to be a

If a society is producing at a point along its production possibility frontier, then the society