Exam 2: Confronting Scarcity: Choices in Production

Draw a production possibilities curve showing military goods and civilian goods. Show how you would measure the increased output of military goods. Show how you would measure the cost of this increase in military goods in terms of civilian goods. Why does opportunity cost change the way that it does?

The concept of comparative advantage is based upon:

Inefficiency occurs when an economy is operating outside its production possibilities curve.

Who may benefit from technological progress?

The fact that a society's production possibilities curve is bowed out from the origin of a graph demonstrates the law of:

The present position of a nation on its production possibilities curve will influence the future position of the production possibilities curve.

Use the following to answer question(s): Exhibit: Guns and Butter -(Exhibit: Guns and Butter) Points A, B, E, and F:

Increasing the level of education in the United States will:

A factor of production that has been produced for use in the production of other goods and services is:

According to the textbook, the dramatic global shift toward market capitalist economies in the 1980s and 1990s is in large part the result of:

According to the Case in Point on economic growth, which pattern describes the historical record on growth?

Human capital is:

Britain imports some goods and exports other goods primarily because of:

Use the following to answer question(s): Exhibit: Production Possibilities Curve 1 -(Exhibit: Production Possibilities Curve 1) Efficiency is achieved at point _____ with respect to Curve _____.

Any point inside a production possibilities curve indicates:

Resources from nature that can be used to produce other goods and services are called:

If an economy is producing a combination of goods that places it on the production possibilities curve, then it has:

The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:

Technology is:

In a market capitalist economy: