Exam 2: Scarcity and the World of Trade-Offs

A production possibilities curve with quantities of clothing and food on the axes shows which of the following? I.A society cannot have an unlimited amount of each good. II.For an efficient society,an increase in clothing production will necessitate a decrease in food production. III.A society will always produce the maximum amount of both clothing and food.

-Refer to the above figure.The shape of the production possibility curve indicates that production of

Economic growth appears on a production possibilities curve as

John has decided to view the solar eclipse tomorrow.The eclipse is an example of

If Vice President Smith is a better typist than his assistant,he is said to have a(n)________ advantage in typing over his assistant.

-Refer to the above figure.We are currently producing at point c.Which of the following statements is true?

To an economist,the term "needs"

Bonnie volunteers to help make floral arrangements at a flower shop.She is an example of

Comparative advantage is always a(n)________ concept.

If a CEO can type faster than her secretary,then

Explain the concept of the law of increasing additional cost.

The fact that our wants are unlimited but our resources are limited implies that

If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then

A bowed Production Possibilities Curve (PPC)indicates

In order for an economy to increase its production possibilities,the economy must

What is the difference between comparative advantage and absolute advantage?

-Refer to the above figure.A farmer has 50 acres of land on which to grow wheat or beans.An acre of land yields 400 bushels of beans or 800 bushels of wheat.Which of the following is a possible combination of beans and wheat that can be grown,assuming the land is farmed efficiently?

Using productive resources to make capital goods requires that we

Which of the following is assumed when constructing a production possibilities curve?

Which of the following is NOT an assumption used in deriving a production possibilities curve?