Exam 2: Scarcity and the World of Trade-Offs

Possibility Good A B C D E F G Televisions 21 20 18 15 11 6 0 Personal computers 0 1 2 3 4 5 6 -Given the production possibilities schedule in the above table,a combination of 23 televisions and 6 personal computers

-A farmer has 100 acres of land on which he can grow soybeans or corn.An acre of land yields 200 bushels of soybeans or 100 bushels of corn.The above figure refers to the farmer's

-Refer to the above figure.How do you describe what is happening as the economy moves from point A to point B?

An irrigation system is installed on a farm in North Dakota.This is an example of which factor of production?

All points inside the production possibilities curve indicate

John and Mary work eight hours at a bakery.John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes.According to this scenario,

Scarcity is caused by

International trade between two nations increases the standard of living of both nations due to

Naturally occurring diamonds are an example of

A B C D E Pizza (Pies) 0 30 60 90 120 Bread (Loaves) 300 240 180 120 60 The above table shows the daily production possibilities for a bakery. Currently the bakery bakes 60 pizzas and 180 loaves of bread,that is-it is at alternative C. -Using the above table,what is the opportunity cost of moving from alternative C to alternative B?

You have the option of consuming one cup of coffee or two donuts or three oranges.You picked the cup of coffee.Therefore the opportunity cost of this cup of coffee is

A straight-line production possibilities curve has

Explain what will happen to the production possibilities curve over time if society gives up some consumption goods in favor of more capital goods.

The concept of absolute advantage relies on

Which of the following will most likely happen when better technology is used in production?

Absolute advantage is

Opportunity costs arise from

-Refer to the above figure.If the farmer is producing 4,000 bushels of beans and 38,000 bushels of wheat,then we know the farmer

Which of the following is a true statement?

If a country increased the production of its capital goods,then