Exam 2: Resource Utilization

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

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs. consumer goods).

Our economy ______________ operates on its production possibility curve.

Which of the following statements about the concept of opportunity cost is true?

Scarcity exists because

Which statement is true?

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

A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.

Statement I. As long as we are on our production possibilities frontier, we can produce as many guns and as much butter as we want. Statement II. In theory, a nation may be on its production possibilities frontier; in practice, no nation has ever attained this economic state.

Which of the following is the most accurate statement?

Hypothetical Production Schedule for a Two-Product Economy -If the economy were producing at point C and moves to point B

Which of the following is an example of capital?

Large firms are able to lower their costs by taking advantage of __________________.

Which statement is true?

-A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside) the production possibilities curve.

John Maynard Keynes noted that

If our unemployment rate is 5% and our capacity utilization rate is 85-90%, our economy is at __________.

Who of the following is not an entrepreneur?

Each of the following statements about capital are correct except

An inward shift of the production possibilities curve could be caused by all of the following except