Exam 2: Confronting Scarcity: Choices in Production

Use the following to answer questions -(Exhibit: Sugar and Freight Trains)Suppose the economy is producing 180 tons of sugar and 2 freight trains.This implies that:

Use the following to answer questions -(Exhibit: Production Possibilities Curve 2)If conditions remain the same, the point representing an unattainable combination of consumer goods and capital goods is point:

Capital is best considered as:

If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:

The textbook classifies technology as _______ and entrepreneurs as _______ .

A movement along the production possibilities curve would be a result of:

There are several advantages that a market economy possesses.These do not include the fact that market economies:

An increase in capital goods and a decrease in consumer goods will:

For a factor of production to be called capital it must:

Use the following to answer questions : -(Exhibit: Guns and Butter)The combination of guns and butter at point H:

The three broad types of resources used to produce goods and services are also known as:

Trade can be beneficial to an economy because:

Government in the United States plays an unimportant role in the economy because the rules for the functioning of the private economy are inherent in the markets themselves.

A source of economic growth is:

Government's role of protecting property rights is considered:

Use the following to answer questions -(Exhibit: Production Possibilities Curve 2)The economy will experience its greatest growth by operating at point:

By specializing in the production of particular goods in which it has a comparative advantage, a nation is:

The model that shows the goods and services the economy is capable of producing is the model of :.

Inefficient production or unemployment exists when the economy is ________ the production possibilities curve.

An economic system is the set of rules that define _______ and _______ .