Exam 2: Scarcity and the World of Trade-Offs

Scarcity and shortages differ in that

-Based on the above figure, if countries "A" and "B" faced the production possibilities curves above, both countries would benefit if

A movement along the production possibilities curve would imply that

-Refer to the above figure. Which of the following points indicates an efficient use of resources?

The only way that a society can produce outside the production possibilities curve is

You should specialize in the production of a good if you have

The conversion of resources into consumer goods or services is called

A country operates inside its production possibilities curve; this may be caused by

A person has a comparative advantage in an activity whenever she

Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?

Juanita has just opened a new business selling pet supplies through the Internet.

The difference between scarcity and a shortage is that

Opportunity cost is

Oil found in Alaska is an example of

John and Mary work at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario,

The president of the United States promises that the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?

An irrigation system is installed on a farm in North Dakota. This is an example of which factor of production?

A bowed production possibilities curve is consistent with

International trade between two nations increases the standard of living of both nations due to

When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to