Exam 2: Some Tools of Economic Analysis

Recognizing the incentive power of property rights and markets,some of the most die-hard central planners are now allowing:

The law of comparative advantage says that:

Opportunity cost is objective;therefore,its value does not change as circumstances change.

If all resources are used efficiently to produce goods and services,a nation will find itself producing:

Which of the following would shift the production possibilities frontier outward?

If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes,Josh's opportunity cost of baking one cake is:

A downward-sloping straight-line production possibilities frontier indicates:

The opportunity cost of an activity:​

If Monica has a comparative advantage in baking and George has a comparative advantage in sewing,then:​

Specialization often leads to gains in productivity for society as a whole.

The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,given the quantity of resources and level of technology,which of the following points is unattainable?

Which economic question does the decision to give all of the butter an economy produces to the homeless answer?

The division of labor refers to:

At all points along the production possibilities frontier,_____.

A mixed economy is one in which:

Which of the following would shift the production possibilities frontier outward?

The figure given below shows the production possibilities frontier for mufflers and socks.The opportunity cost of moving from point b to d is:

The law of comparative advantage does not apply to:

Along a bowed-out production possibilities frontier,as more of one good is produced,_____.

Inefficiency is a flaw of a command economy because there is less incentive for resources to flow to their highest-valued uses.