Exam 2: Scarcity, trade-Offs, and Production Possibilities

Which of the following would NOT be a factor that determines the position and shape of a society's production possibilities curve?

Which of the following statements about the production possibilities curve is the most accurate?

There are four factors of production: land,labour,capital,and entrepreneurship.

In a market economy,prices help determine the distribution of goods and services but not the allocation of resources.

When you buy groceries at your local supermarket,you are making a transaction in the product market.

Along a straight-line production possibilities curve,which of the following best describes the opportunity costs of producing the good on the X-axis?

An increase in an economy's capital stock increases its future productive capacity.

Capital,entrepreneurship,land,and labour are needed to produce goods and services.What are the respective payments for each of these factors of production?

Which of the following is the most accurate statement about a production possibilities curve?

FIGURE 2-2 -Refer to Figure 2-2.What is the opportunity cost of producing an additional cake equal to?

Which of the following best describes what occurs along a bowed-out production possibilities curve?

What tends to occur in countries with high labour costs?

Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher.How can this be portrayed on the production possibilities curve?

Individuals who live outside of urban areas continue to build their houses and businesses further and further out,spreading into farming communities and uninhabited areas.What are the trade-offs involved in allowing this type of community expansion?

FIGURE 2-12 -Refer to Figure 2-12.Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift from AA to BB?

FIGURE 2-7 -Refer to Figure 2-7.What happens in the economy when production moves from Point A to Point B?

FIGURE 2-11 -Refer to Figure 2-11.How is the statement "To get more apples,we have to give up wheat" best illustrated in the above diagram?

The leader of a federal political party made the following campaign promise: "My administration will increase national defence without requiring sacrifices elsewhere in the economy." Under what circumstance can the promise be kept?

FIGURE 2-12 -Refer to Figure 2-12.Which of the following statements about a movement from Point D to Point F is the most accurate?

Which of the following would mostly likely shift the production possibilities curve in an outward direction?