Exam 2: Scarcity and the World of Trade-Offs

A country operates inside its production possibilities curve; this may be caused by

What happens to the production possibilities curve if technology enables an economy to produce more of every good? Is there any tradeoff involved in this change?

It is correct to state that a society which is on its production possibilities curve is

-The above figure is referred to as a(n)

A movement along the production possibilities curve would imply that

Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources

Economic growth is shown by

All of the following are assumptions of the production possibilities curve EXCEPT

Suppose that at a bicycle shop,instead of having each worker assemble an entire bicycle themselves,one person welds the frames,another person works on the braking system,another person works on the tires,and another person works on the gears.This best demonstrates the concept of

Juanita has just opened a new business selling pet supplies through the Internet.

The saying that "You cannot have your cake and eat it too" illustrates the economic concept of

For every choice a person makes it can be assumed that

-Refer to the above figure.Given our current level of technology and resources,the unobtainable point(s)of production would be

Scarcity refers to

The trade-off between current consumption and the production of capital goods is also a trade-off between

When two countries specialize in the production of different goods and trade with each other,it is most likely each country will

The opportunity cost of more consumption of goods today is

The concept of opportunity cost exists because

A man-made resource such as a building or a machine is an example of which resource?

Scarcity affects