Exam 2: Economic Tools and Economics Systems

The U.S. economy is best characterized as

On a production possibilities frontier, the opportunity cost of one more unit of a commodity per time period is measured by the

Comparative advantage is based on opportunity costs.

Which economic question does the decision to give all of the butter the economy produces to the homeless answer?

The opportunity cost of an activity is

Attending college can be viewed as a form of

Just as resources are scarce for the individual,

The set of mechanisms and institutions that resolve the basic economic questions is called the

Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing. Therefore,

The law of comparative advantage says that

The primary differences in economic structure among different countries relate to ownership of resources and the manner in which economic activities are coordinated.

An economic system

The opportunity cost of a particular activity

Exhibit 2-9 -Refer to Exhibit 2-9. Which of the graphs best illustrates the impact on the production possibilities frontier of a decrease in unemployment?

A production possibilities frontier will shift inward if there is more unemployment of labor.

The cost of attending college

Each point on a production possibilities frontier requires full employment of resources.

"Efficiency" refers to

Exhibit 2-9 -Refer to Exhibit 2-9. Which of the graphs best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?

Exhibit 2-2 -The division of labor facilitates productivity increases for all of the following reasons, except one. Which is the exception?