Exam 2: Confronting Scarcity: Choices in Production

If an economy's factors of production were owned by the government sector and the coordinating activity was done by a government planning board, the economy would be called:

If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:

The fact that a society's production possibilities curve is bowed out from the origin of a graph demonstrates the law of:

Comparative advantage and trade allow nations to specialize in the production of a larger number of different goods.

If an economy has to sacrifice only one unit of good X for each unit of good Y produced throughout the relevant range, then its production possibilities curve has a(n) :

Use the following to answer questions Exhibit: Guns and Butter -(Exhibit: Guns and Butter) The maximum amounts of guns and butter this economy can produce is:

The process through which an economy's production possibilities curve is shifted outward is:

Use the following to answer questions Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) Point Z:

Comparative advantage leads to producing at a:

Use the following to answer questions Exhibit: Bicycles and Radishes 2 -(Exhibit: Bicycles and Radishes 2) In the country depicted in this exhibit, the opportunity cost of an additional ton of radishes would be greater at:

Improvements in technology will shift the production possibilities curve outward.

If the U.S.economy adds to the capital stock, this may require a temporary decrease in the amount of present consumption.

The proposition that states that as output increases for one good in an economy that is on its production possibilities curve, the cost of additional units of the good on the horizontal axis will be greater and greater is the:

One of the two criteria for a resource to be considered as a natural resource is that it must:

According to the Case in Point on economic growth, which pattern describes the historical record on growth?

A factor of production that is produced in order to produce something else is called:

Use the following to answer questions Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) The movement from Curve 1 to Curve 2 indicates:

A student receives a bachelor's degree in economics and then achieves gainful employment as an economic analyst with a Fortune 500 company.This new worker is likely to enhance the economy's productivity through:

According to the textbook, the dramatic global shift toward market capitalist economies in the 1980s and 1990s is in large part the result of:

If two countries participate in free trade: