Exam 2: Confronting Scarcity: Choices in Production

An increase in capital goods and a decrease in consumer goods will:

Use the following to answer question(s): Exhibit: Bicycles and Radishes 2 -(Exhibit: Bicycles and Radishes 2) In the country depicted in this exhibit, the opportunity cost of an additional ton of radishes would be greater at:

The law of increasing opportunity cost indicates that the production possibilities curve has a constant slope.

The difference between iron ore deposits and the steel produced from these deposits that is later used to make factory equipment illustrates the difference between:

Government's role of taxing some citizens and transferring income to others is considered:

Use the following to answer question(s): Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) The movement from Curve 1 to Curve 2 indicates:

Which of the following is not capital?

Efficient production implies that it is:

During the Great Depression:

Use the following to answer question(s): Exhibit: Strawberries and Submarines -(Exhibit: Strawberries and Submarines) As the economy moves from point A towards, say, point D, it will find that the opportunity cost of each additional submarine:

Use the following to answer question(s): Exhibit: Bicycles and Radishes 2 -(Exhibit: Bicycles and Radishes 2) The country depicted in this exhibit is currently operating at point M. It could achieve production at point I only if it:

If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:

The proposition that states that as output increases for one good in an economy that is on its production possibilities curve, the cost of additional units of the good on the horizontal axis will be greater and greater is the:

Use the following to answer question(s): Exhibit: Production Possibilities Schedule 1 -(Exhibit: Production Possibilities Schedule 1) If the economy produces 2 units of consumer goods per period, it also can produce at most _______ units of capital goods per period.

If two countries participate in free trade:

Assume that Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces.

In the Case in Point on economic growth prospects for the United States, economist Robert Gordon expects for the near future:

Use the following to answer question(s): Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The economy will experience its greatest growth by operating at point:

The three broad types of factors of production are:

Capital, labor, and natural resources combine to produce goods and services. Which of the following will not lead to an increase in the ability of an economy to produce goods and services?