Exam 2: Resource Utilization

Hypothetical Production Schedule for a Two-Product Economy -If the economy is producing at point B,the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.

John Maynard Keynes noted that

If the unemployment rate is 7 percent,our economy is operating

-Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y.

If a nation is currently operating at a point inside its production possibilities curve,it

Capital refers to

-The unemployment rate falls when we go from

Referring to a production possibilities curve and the goods being compared,depict the economic event.The Soviet Union entered World War II at a full employment production level (guns vs.butter).

In the context of the global economy,our capacity utilization rate __________________ than it was just a few decades ago.

If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced _________________.

Hypothetical Production Schedule for a Two-Product Economy -In the table above,points A through F represent _______________________ of resources.

A movement from point J to point M would represent

The study of economics

Hypothetical Production Schedule for Two-Product Economy -What is the opportunity cost of moving from point D to point C?

If point C is now 9 units of guns and 8 units of butter,the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13,the production possibility curve would have shifted _____________ (outward/inward).

Scarcity exists because

Which statement is true?

Which of the following would NOT be an opportunity cost of fighting the war in Iraq?

An inward shift of the production possibilities curve

Improving the education level of the labor force will