Exam 1: Economic Issues and Concepts

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-3 -Refer to Figure 1-3. If Country X is currently producing at point A, it could move to point B if

Karl Marx argued that

The table below shows that, in one day, Claire can complete either 3 chemistry or 2 biology lab reports, while Sam can complete either 4 chemistry or 3 biology lab reports. TABLE 1-2 -Refer to

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-3 -Refer to Figure 1-3. That the production possibilities boundaries are drawn concave to the origin reflects the

The opportunity cost of producing good A is defined to be

If a country's production possibilities boundary is drawn as a straight (downward-sloping) line it indicates

The opportunity cost of going to college or university for four years is

Economists usually assume that households

Suppose there are three alternatives to attending a social event: read a novel (you value this at $10),go to work (you could earn $20), or watch videos with some friends (you value this at $25). Theopportunity cost of attending the social event is

One of the major results of the greater specialization of labour is that

Which of the point(s) below is (are) true of money?i) Money allowed for specialization of labour and expansion of trade. iii) Money allowed for the development of a market economy.iv) Money allowed one to save current production for future use.

The barter system of exchange is inefficient because

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-3 -Refer to Figure 1-3. If Country X, constrained by the production possibilities boundary PPB1, is currently producing at point A, it can produce more capital goods by moving to point

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-3 -Refer to Figure 1-3. Growth in the country's productive capacity is illustrated by

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-3 -Refer to Figure 1-3. At point B,

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Madeleine allows herself $100 per month for purchasing coffee. The diagram below illustrates the choices available to her. FIGURE 1-2 -A farmer selling tomatoes and corn at a roadside, and a currency trader in Hong Kong, are eachparticipating in

If some income earned by households is not spent on output, or if some income earned by firms isnot spent on factor services, the circular flow of income will

On a diagram of a production possibilities boundary, the concept of opportunity cost is illustrated by the

A