Table 3-1 \(\begin{array} { c c } \begin{array} { c } \text { Peanuts } \\ \text { (Bushels) } \end{array} & \begin{array} { c } \text { Corn } \\ \text { (Bushels) } \end{array} \\ \hline 0 & 55 \\ 10 & 50 \\ 20 & 42 \\ 30 & 28 \\ 40 & 0 \end{array}\) -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

A) 8 bushels of corn. B) 42 bushels of corn. C) 50 bushels of corn. D) impossible to determine from the information given. A) 8 bushels of corn. B) 42 bushels of corn. C) 50 bushels of corn. D) impossible to determine from the information given. A

Exam 3: The Fundamental Economic Problem: Scarcity and Choice

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Table 3-1 Peanuts (Bushels) Corn (Bushels) 0 55 10 50 20 42 30 28 40 0 -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

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The idea of opportunity cost is relevant

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Economics is often described as a science of constrained choice.How do you justify this argument?

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Economics deals with the allocation of limited resources to satisfy unlimited human wants.We need resources such as labor,capital,raw material etc,to produce goods and services to satisfy man's unlimited needs.These resources are not only scarce but they have more than one use.The scarcity of resources means humans are constrained in the choices they make about the goods and services they produce,and thus also about which wants they will ultimately satisfy.

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 4

Firms are encouraged by the profit motive to use inputs efficiently.

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Question 5

Economics is the study of the logic of

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Question 6

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

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Question 7

The production possibilities frontier has a tendency to bow outward from the origin.

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Question 8

For a given production possibilities frontier,which points are attainable?

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Question 9

The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn

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Question 10

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 11

The production possibilities curve illustrates the basic principle that

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Question 12

What are the three coordination tasks which markets resolve?

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Question 13

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

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Question 14

The divergence between money costs and opportunity costs is the least in which of the following situations?

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Question 15

Money costs and opportunity costs are concepts that are

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Question 16

If the U.S.government decides to increase military spending,one opportunity cost will be lower spending on education.

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Question 17

"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree.

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Question 18

Although finished goods are scarce,the inputs to produce them are not scarce.

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Question 19

Because resources tend to be specialized,increased production of military goods tends to

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Question 20

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Exam 3: The Fundamental Economic Problem: Scarcity and Choice

Table 3-1 Peanuts (Bushels) Corn (Bushels) 0 55 10 50 20 42 30 28 40 0 -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

The idea of opportunity cost is relevant

Economics is often described as a science of constrained choice.How do you justify this argument?

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

Firms are encouraged by the profit motive to use inputs efficiently.

Economics is the study of the logic of

Economists use the term capital to describe that factor of production that includes human-made resources such as factories,buildings,machinery and tools.

The production possibilities frontier has a tendency to bow outward from the origin.

For a given production possibilities frontier,which points are attainable?

The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn

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

The production possibilities curve illustrates the basic principle that

What are the three coordination tasks which markets resolve?

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

The divergence between money costs and opportunity costs is the least in which of the following situations?

Money costs and opportunity costs are concepts that are

If the U.S.government decides to increase military spending,one opportunity cost will be lower spending on education.

"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree.

Although finished goods are scarce,the inputs to produce them are not scarce.

Because resources tend to be specialized,increased production of military goods tends to

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 I: the Price System

The Shortcomings of Free Markets

The Markets Prime Achievement: Innovation and Growth

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

International Trade and Comparative Advantage

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