Exam 3: The Fundamental Economic Problem: Scarcity and Choice

Figure 3-3 -In Figure 3-3,a shift from A to B seems most consistent with which of the following?

Figure 3-4 -In Figure 3-4,for which of the following would this statement be t: "To get more apples we have to give up wheat." A movement from

The production possibilities frontier slopes downward and to the right because of limited resources.

If an economy wants to experience economic growth,what decision must it make and carry out? Explain.

Figure 3-2 -In Figure 3-2,a point such as A

Employment discrimination is a source of

Adam Smith noted that people are adept at pursuing their own self-interests,and that ____ harnesses this self-interest remarkably well.

In a market economy,the decision regarding allocation of resources is made by

Individuals face scarcity; whole societies do not.

Specialization and division of labor are made easier by the existence of money.

Workers in Adam Smith's famous pin factory example,who were proficient in pin production,then faced the problem of

If society produces at a point inside the production possibilities frontier,it is characterized by full employment of resources.

Scarcity is a concept that applies to all of the following except

Adam Smith noted that people are adept at which of the following?

Being on the PPF implies that increasing the production of one good or service can only be accomplished by decreasing the quantity produced of another good or service.

A production possibilities curve always slopes downward to the right because resources

Table 3-1 -Suppose a farmer produces 50 bushels of corn and 10 bushels of peanuts.According to Table 3-1,the opportunity cost of 10 more bushels of peanuts is

How are money cost and opportunity cost related to each other?

Millionaires do not face the problem of scarcity.

If the budget deficit was eliminated,the federal government would have more money than it could spend.