Exam 3: Economic Tools and Economics Systems

On a production possibilities frontier showing possible output levels of good A and good B, the opportunity cost of producing the first 10 units of A will usually be

Exhibit 2-3 -In Exhibit 2-3, if all the economy's resources are used efficiently to produce good B, then the economy is at point

The economic question of what will be produced is

A medium of exchange must be

The mixed economy is the dominant economic system in the world because

Exhibit 2-2 -Given the information in Exhibit 2-2, which product should Friday (an individual) make?

Exhibit 2-3 -Point g in Exhibit 2-3 is efficient because

At various points along the production possibilities frontier,

A person who can produce more of a good than another person is said to possess a comparative advantage.

Opportunity cost is defined

Exhibit 2-1 -According to Exhibit 2-1, if Maria does one fewer load of laundry, how many pages can she type in the time saved on laundry?

A production possibilities frontier will shift inward if there is more unemployment of labor.

Exhibit 2-3 -Point f in Exhibit 2-3 represents

The opportunity cost of going to college is best measured by the

If you and I agree to exchange four ginger snaps for one chocolate chip cookie, then it must be true that

The "rules of the game," the set of conditions that shape individual incentives and constraints, are determined by

Exhibit 2-9 -Refer to Exhibit 2-9. Which of the graphs best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?

The concave shape of a production possibilities frontier showing possible output levels of good A and good B indicates that if the economy produces more and more of good B,

Exhibit 2-10 -Refer to exhibit 2-10. In Costa Rica the opportunity cost of 1 ton of rice is:

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?