Exam 2: Scarcity and the World of Trade-Offs

If a country increased the production of its capital goods, then

Opportunity cost can best be defined as

Which of the following are considered factors of production? I. Land II. Labor III. Physical capital IV. Entrepreneurship

The law of increasing opportunity cost implies that

When determining the production possibilities curve

The above table shows the daily production possibilities for a bakery. Currently the bakery bakes 60 pizzas and 180 loaves of bread, that is-it is at alternative C. -Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?

If the quantity desired of something exceeds the amount available at zero price, that item is called

John has decided to view the solar eclipse tomorrow. The eclipse is an example of

Specialization occurs because

When productive activities are organized according to the principle of the division of labor,

In economic terminology, the accumulated training and education that workers receive to increase their productivity is referred to as

-Refer to the above figure. How do you describe what is happening as the economy moves from point C to point B?

The existence of scarcity means that

The accumulated training and education that you have is

In order for a production possibilities curve to shift to the right, which of the following must occur?

Physical capital is distinguished from human capital because

One of the assumptions underlying the production possibilities curve is that

Bonnie is a self employed. She makes floral arrangements in a building she rents. She owns the delivery vehicle and has hired a delivery driver. She is an example of

In order for an economy to increase its production possibilities, the economy must

If Joey goes surfing for four hours instead of earning $10 per hour for those four hours, his opportunity cost is