Exam 2: Measuring Macroeconomic Performance: Saving and Wealth

The principle of comparative advantage states that specialization increases productivity,but the principle of increasing opportunity costs states that when you increase production of a single good you must use increasingly costly resources.These two principles

-Refer to the graph above.The graph indicates that,as more eggs are produced,the opportunity cost of producing eggs is

If a person has the lowest opportunity cost of producing a particular good,that person has a(n)

The production possibilities curve is

Good W is on the vertical axis and good Z is on the horizontal axis of a production possibilities curve.A technological innovation that improved labour's productivity for W but had zero effect on labour's productivity for Z would cause the production possibilities curve to

The introduction of compulsory retirement for all workers at age 60 would cause the production possibilities curve to

If a given production combination is efficient,then it must be

Which of the following factors will cause the production possibilities curve to shift away from the origin?

Jane can produce 50 pizzas or 100 hamburgers per day,while Sam can produce 30 pizzas or 90 hamburgers per day.Jane has an absolute advantage in the production of

The slope of any production possibilities curve is __________ because __________.

-Jenny's opportunity cost of producing an extra pair of shoes is

Which of the following statements is true?

If a nation can produce a good more quickly than any other nation,that nation has a(n)

-Which of the following statement is most appropriate for the given production possibilities curve?

-As the store moves from producing only electric guitars to only acoustic guitars,the sequence of workers will be _________ first,then ________ and finally ________.

In a two-person,two-good economy,the benefits of labour specialization will be larger when

If Leslie can produce two pairs of pants in an hour while Eva can make one pair in an hour,then

Every point on the production possibilities curve is

Lou and Alex live together and share household chores.They like to cook some meals ahead and eat leftovers.Suppose that in one hour Lou and Alex can do the following: -Which of the following is true?

-As Bo increases her production of apples from 6 units to 12 units,she finds that