Exam 2: Resource Utilization

Hypothetical Production Schedule for a Two-Product Economy -If the economy could produce 42 consumer goods and 12 capital goods,given the current production possibilities curve,the economy would be producing ___________________ (outside/on/inside)the curve.

-Point P represents

Referring to a production possibilities curve and the goods being compared,depict the economic event.The bubonic plague (Black Death)in the 1300s killed one-third of Europe's population (capital goods vs.consumer goods).

Which statement is true?

-If the economy were producing at point F,

Referring to a production possibilities curve and the goods being compared,depict the economic event.The SARS epidemic spreads rapidly throughout Toronto,Canada claiming millions of lives (capital vs.consumer goods).

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

According to the law of increasing costs,as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

The opportunity cost of a movement from point N to J would

People are forced to economize because of

Each of the following is an example of capital,except

-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

If an economy is operating on its production possibility frontier,which of the following statements is true?

Assuming that full employment of labor is considered 5 percent unemployment,in 1998 and 1999 our economy operated ____________ the production possibilities frontier.

Which of the following is the most accurate statement?

Hypothetical Production Schedule for a Two-Product Economy -If the economy produces 27 consumer goods and 12 capital goods,the economy would be producing __________________ (outside/on/inside)the production possibilities curve.

Which statement is true?

Assuming that a society always operates on its production possibilities curve,an outward shift of the curve implies

If our nation is operating at full production,not only are we using our most ________ technology,but we are utilizing our land,labor,capital and entrepreneurial ability at their most _______________.

Our nation