Exam 2: Resource Utilization

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

Statement I. When U.S. unemployment rate is five percent, it attains full employment. Statement II. Full employment and full production mean virtually the same thing.

The value of the next best alternative defines __________________.

The statement "By the time our grandchildren are born, scarcity will not be a problem" is

An inward shift in the entire production possibilities frontier

A production possibilities frontier demonstrates

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The literacy rate increases among workers (capital goods vs. consumer goods).

Hypothetical Production Schedule for a Two-Product Economy -If the economy is producing at point D, the opportunity cost of shifting resources from consumer goods to gain 6 capital goods is _______ consumer goods.

-Place point C on the graph to indicate where our economy operated in 1997.

Which of the following demonstrates opportunity cost?

-Place point Z on the graph to indicate where our economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.

Which of the following will shift an economy's production possibilities curve inward?

In 1943-1945

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Widespread use of the assembly line revolutionizes U.S. industry in the early 20th century (capital vs. consumer goods).

The main effect of employment discrimination is

Which of the following statements about full employment is true?

-If our economy was operating at point O (where the two axes come together), we would have an unemployment rate of ______ percent.

Which of the following events in U.S. history did not create economic growth (shift the production possibilities curve outward)?

-If the economy were at full employment and now producing at point Y,

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