Exam 1: Limits, Alternatives, and Choices

Economics involves "marginal analysis" because:

The production possibilities curve shows:

Although sleeping in on a work day or school day has an opportunity cost,sleeping late on the weekend does not.

Economic models:

Microeconomics is concerned with:

Opportunity cost is best defined as:

Which of the following statements is correct?

Production possibilities tables for two countries,North Cantina and South Cantina: North Cantina Production possibilities (alternatives) South Cantina Production possibilities (alternatives) -Refer to the above tables.The opportunity cost of the fifth unit of capital goods:

The entrepreneur's sole function is to combine other resources (land,labour,and capital)in the production of some good or service.

An economic model is:

Which of the following will shift the production possibilities curve to the right?

A normative statement is one which:

In constructing models,economists:

A major argument for economic growth is that it:

Purposeful behaviour implies that everyone will make identical choices.

Refer to the diagram below.Points A,B,C,D,and E show:

-Refer to the above production possibilities curves.The movement from curve (a)to curve (b)implies an increase in the quantity and/or quality of society's productive resources.

Normative statements are expressions of facts.

A nation's production possibilities curve is "bowed out" from the origin because:

-Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that: