Exam 2: Confronting Scarcity: Choices in Production

Use the following to answer question(s): Exhibit: Guns and Butter -(Exhibit: Guns and Butter) A movement from producing 12 units of guns and 16 units of butter per period to point B means a:

Use the following to answer question(s): Exhibit: Guns and Butter -(Exhibit: Guns and Butter) If the economy were operating at point B, producing 16 units of guns and 12 units of butter per period, a decision to move to point E and produce 18 units of butter:

Inefficient production or unemployment exists when the economy is ________ the production possibilities curve.

Use the following to answer question(s): Exhibit: Production Possibilities Schedule 1 -(Exhibit: Production Possibilities Schedule 1) The opportunity cost of producing the fourth unit of consumer goods is ___ __ units of capital goods.

Use the following to answer question(s): Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) If conditions remain the same, the point representing an unattainable combination of consumer goods and capital goods is point:

The set of acquired skills and abilities that workers bring to the production of goods and services is:

Use the following to answer question(s): Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The point representing a combination of consumer goods and capital goods that would result from underutilization or inefficient use of society's available resources is point:

Use the following to answer question(s): Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) If the economy is on Curve 1, it:

Comparative advantage and trade allow nations to specialize in the production of a larger number of different goods.

If the United States has a lower opportunity cost than Mexico in the production of wheat, then it will import wheat from Mexico.

The major difference between natural resources and capital is that the former

By specializing in the production of particular goods in which it has a comparative advantage, a nation is:

Trade can be beneficial to an economy because:

The slope of a typical production possibilities curve is:

The production possibilities curve represents the fact that:

Use the following to answer question(s): Exhibit: Production Possibilities Curve-Military and Civilian Goods -(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then:

If a production possibilities curve were bowed in or convex to the origin of a graph, it would demonstrate:

Two friends, one an engineer and the other an accountant, decide to form a partnership. If the accountant takes care of the books and the engineer runs the factory, they are likely to enhance the economy's productivity through:

Use the following to answer question(s): Exhibit: Guns and Butter -(Exhibit: Guns and Butter) This production possibilities curve is:

If wages are higher in the United States than in Brazil, then: