Exam 2: Confronting Scarcity: Choices in Production

Use the following to answer questions Production P ossibilities S chedule 2 V W X Y Z Capital goods per period 0 1 2 3 4 Consumer goods per period 20 18 14 8 0 -(Exhibit: Production Possibilities Schedule 2)If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period.

The cost of the Great Depression between 1929 and 1942 was a loss of:

There is an important role for government in a market capitalist economy.

Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:

An economy is said to have a comparative advantage in producing a particular good if it:

In the 1980s, the federal government undertook a major build-up of the military sector, leading to reports that prices charged by military contractors were spiraling upward.According to production possibilities analysis, this result is not surprising due to:

Use the following to answer questions : -(Exhibit: Guns and Butter)If the economy were operating at point B, producing 16 units of guns and 12 units of butter per period, a decision to move to point E and produce 18 units of butter:

A person who seeks to earn profits by finding ways to organize factors of production is called a(n):

Human effort that can be applied in the production process is called:

When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis: :

Any point inside a production possibilities curve indicates:

In general, production possibilities curves are "bowed out" because:

The basic economic differences among nations throughout history concerning institutions, philosophy, and ideology mainly focus on:

In drawing a production possibilities curve, it is assumed that:

Efficient production exists when the economy is:

The gains or benefits from trade are:

Money is a factor of production because it is part of capital.

Natural resources are resources that occur in nature, while capital is a produced good that is used to produce another good.

Use the following to answer questions -(Exhibit: Production Possibilities Curve-Military and Civilian Goods)If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that:

Use the following to answer questions : -(Exhibit: Guns and Butter)If the economy were producing 8 units of guns and 12 units of butter per period: