Exam 2: Confronting Scarcity: Choices in Production

An example of a natural resource is:

Use the following to answer question(s): Exhibit: Production Possibilities Schedule 1 -(Exhibit: Production Possibilities Schedule 1) If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s) of consumer goods per period.

Capital is best considered as:

Use the following to answer question(s): Exhibit: Production Possibilities Curve for Firms A and B -(Exhibit: Production Possibilities Curve for Firms A and B. In Firm B, the opportunity cost of producing 1 more unit of good X is:

Use the following to answer question(s): Exhibit: Production Possibilities Curve-Military and Civilian Goods -(Exhibit: Production Possibilities Curve-Military and Civilian Goods) The movement from point G on Curve 1 to point E on Curve 2 means that the:

Use the following to answer question(s): Exhibit: Guns and Butter -(Exhibit: Guns and Butter) The maximum amounts of guns and butter this economy can produce is:

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods:

Use the following to answer question(s): Exhibit: Sugar and Freight Trains -(Exhibit: Sugar and Freight Trains) Suppose the economy is operating at point B. The opportunity cost of producing the third freight train would be:

Use the following to answer question(s): Exhibit: Production Possibilities Curve-Military and Civilian Goods -(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that:

Which of the following will not lead to economic growth?

Discuss and explain under what conditions government participation in the economy has a positive and productive role.

Governments often establish rules that influence how an economy operates. Which of the following rules will most likely increase the ability of society to produce goods and services?

The North Korean economy is currently classified as:

A source of economic growth is:

Human effort that can be applied in the production process is called:

An economic system is the set of rules that define _______ and _______.

One of the two criteria for a resource to be considered as a natural resource is that it must: