Exam 3: The Fundamental Economic Problem: Scarcity and Choice

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If a farmer's opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.

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Question 1

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Economics is the study of the logic of

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Question 2

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A country can gain by importing a good from abroad even if that good can be produced more efficiently at home.Is this statement true?

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Question 3

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This statement could be true.Such imports make sense if they enable the country to specialize in producing those goods at which it is even more efficient.In determining the most efficient patterns of production and trade, it is comparative advantage that matters.Two countries can gain by trading even if one country is more efficient than another in the production of every good.

Opportunity cost is best defined as the value of

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Question 4

According to Baumol and Blinder, recognition of the usefulness of markets

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Question 5

A market system solves the

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Question 6

Why is it inefficient for an economy to be inside the production possibilities frontier?

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Question 7

Efficient production can be carried out anywhere on or below the production possibilities frontier.

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Question 8

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

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Question 9

Specialization of labor makes sense only if there is some means of exchange.

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Question 10

Rational decision making must always be based on the concept of opportunity cost.

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Question 11

Which of the following events create an outward shift of the production possibilities curve?

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Question 12

Opportunity cost is the value of the next best alternative that is given up.

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Question 13

Every economic decision involves a trade-off because of

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Question 14

A market society will always protect the natural environment.

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Question 15

?How do economists define efficiency? Elaborate.

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Question 16

The most important way in which inefficiency occurs is

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Question 17

The idea of opportunity cost is relevant

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Question 18

Which of the following ideas of Adam Smith has religious overtones?

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Question 19

Society can produce at a point outside the production possibilities frontier, but only if it is using all of its resources efficiently.

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Question 20

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Exam 3: The Fundamental Economic Problem: Scarcity and Choice

If a farmer's opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.

Economics is the study of the logic of

A country can gain by importing a good from abroad even if that good can be produced more efficiently at home.Is this statement true?

Opportunity cost is best defined as the value of

According to Baumol and Blinder, recognition of the usefulness of markets

A market system solves the

Why is it inefficient for an economy to be inside the production possibilities frontier?

Efficient production can be carried out anywhere on or below the production possibilities frontier.

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

Specialization of labor makes sense only if there is some means of exchange.

Rational decision making must always be based on the concept of opportunity cost.

Which of the following events create an outward shift of the production possibilities curve?

Opportunity cost is the value of the next best alternative that is given up.

Every economic decision involves a trade-off because of

A market society will always protect the natural environment.

?How do economists define efficiency? Elaborate.

The most important way in which inefficiency occurs is

The idea of opportunity cost is relevant

Which of the following ideas of Adam Smith has religious overtones?

Society can produce at a point outside the production possibilities frontier, but only if it is using all of its resources efficiently.

What Is Economics

The Economy: Myth and Reality

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

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