Exam 2: Confronting Scarcity: Choices in Production

Capital is best considered as:

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

In market capitalism:

Money is considered to be a factor of production.

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

Use the following to answer questions Exhibit: Production Possibilities Curve-Military and Civilian Goods -(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then:

Use the following to answer questions Exhibit: Bicycles and Radishes 1 -(Exhibit: Bicycles and Radishes 1) The exhibit shows production possibilities curves for two countries that produce only radishes and bicycles.The axes of both graphs are measured in equivalent units.Country A is now operating at point M, and Country B is now operating at point N.Suppose Country B wants to be able to produce more radishes and more bicycles.To do this, it must:

Economic resources used in the production process are called:

The law of increasing opportunity costs is a result of the fact that:

An example of capital is:

The three broad types of factors of production are:

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.

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

Use the following to answer questions Exhibit: Production Possibilities Curve -(Exhibit: Production Possibilities Curve 1) Resource underutilization occurs at point _____ with respect to Curve __ ___ .

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

A factor of production that has been produced for use in the production of other goods and services is:

Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods.If the output of military goods is increased, the output of civilian goods:

Which of the following is not capital?

The law of increasing opportunity cost indicates that the production possibilities curve has a constant slope.

Use the following to answer questions Exhibit: Production Possibilities Curve-Military and Civilian Goods -(Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to point U could be a representation of what happened during: