Exam 2: Scarcity and the World of Trade-Offs

Opportunity cost is

A point inside a production possibilities curve indicates

-In the above figure,how many bushels of corn are produced at point "a"?

Whenever productive resources are used to make capital goods

Scarcity arises because

All of the following would cause the production possibilities curve to shift outward EXCEPT

When an employee at a grocery store scans the price of your items,bags the groceries,and collects your paper,the individual has provided

Resources are also known as

Which of the following activities are production?

The law of increasing opportunity cost implies that

Labor,human capital,and entrepreneurship are resources related to human beings.Distinguish among the three resources.

Why is it that all of our wants cannot be satisfied?

Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court.What are examples of the opportunity costs of this decision?

Opportunity cost is defined as

-Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?

-In the above figure,as more ukuleles are produced,the opportunity cost in terms of guitars is

The ability to produce a good at a lower opportunity cost that others is known as

Which of the following would cause an economy to produce at a point inside its production possibilities curve?

On an afternoon that a class meets,you could alternatively study for an exam that will take place in another class the next morning,go to a movie with a friend,or,most desirable to you at present,take a nap.The opportunity cost of attending the afternoon class is

Which of the following would be categorized as "land"?