Exam 2: Scarcity, Choice, and Economic Systems

Productive inefficiency could arise from

Suppose that an economy produces civilian goods and military goods.If technological breakthroughs increase its ability to produce military goods,then

Figure 2-2 -Assume that U.S.agricultural land is used either to raise cattle for beef or to grow wheat.Figure 2-2 represents the production possibility frontier for beef and wheat.What is assumed constant as the economy moves from point F to point G?

Figure 2-9 -Assume that the publishing industry produces novels and textbooks,as shown in the production possibilities frontier in Figure 2-9.Moving from point H to G,the opportunity cost of those five additional textbooks equals

By better utilizing existing resources,an economy can produce at a point outside of its current production possibilities frontier.

World War II led to a dramatic increase in economic growth in the United States because

One kind of gain from specialization is that

We say there is productive inefficiency in saving lives if

If Pat can produce a good or service at a lower opportunity cost than Chris can,then

Assume that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.Agricultural researchers develop a new wheat hybrid that is more resistant to drought and insects.What effect will this have on the production possibilities frontier for cotton and wheat?

Figure 2-4 -Which production possibilities frontier(s)in Figure 2-4 depict(s)a situation in which all resources are perfect substitutes in production?

Figure 2-10 -Consider the production possibilities frontier for food and clothing in Figure 2-10.A movement from point J to point K could be caused by

If the U.S.government decides to distribute surplus cheese to food banks for the homeless,the government is addressing the question of

Fiejura 2-11 Jails Fetched Jack Jill Per Hau Boards Sawed 20 4 Per Hau 10 8 -According to the information in Figure 2-11,

All of the following,except one,help explain why specialization leads to greater production than is otherwise possible.Which is the exception?

Under a market system of resource allocation,the most important limitations on individual freedom of action are imposed by

-Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships.If the country is currently operating at point C and decided to move to point B,

The principle of comparative advantage says that

Figure 2-2 -Assume that U.S.agricultural land is used either to raise cattle for beef or to grow wheat.Figure 2-2 represents the production possibility frontier for beef and wheat.Between points F and G,the opportunity cost increasing wheat by two bushels equals

An economic system in which resources are privately owned and allocated by the market is called