Exam 2: Scarcity and the World of Trade-Offs

Efficiency is defined as

The law of increasing additional cost exists because

All of society's applied knowledge on how to produce goods and services is

Technology

To have more consumer goods in the future, we must

-A bowed Production Possibilities Curve (PPC)indicates

What does the slope of the production possibilities curve represent? Explain.

Whenever productive resources are used to make capital goods

List and explain three major factors that cause economic growth.

You like to sleep until 11:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?

It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?

Inefficient use of resources is shown on the production possibilities curve

Which of the following would result in a movement along the production possibilities curve?

Economic goods are items that

Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 million a year. His opportunity cost at graduation was ________ and eight years later was ________.

Opportunity cost is

Opportunity cost is best defined as

Human capital is

Efficiency can correctly be defined as

If a country wants to promote future growth, it should