Exam 2: Scarcity and the World of Trade-Offs

Some resources are better suited to produce certain goods than other resources.This fact leads to

The most basic concept of economics is

The making and selling of a pencil for ten cents would likely NOT be possible,but for

Why do most people specialize in their work?

Jane is a top-level executive and is very rich.Jane just ordered a car only to be told that she will have to wait three weeks for it to be delivered.Which of the following statements is true?

To have more consumer goods in the future,we must

Distinguish between scarcity and shortages.

Entrepreneurs are important to market economies because

When an economy sacrifices production of consumption goods to produce more capital goods,we would expect that the production possibilities curve will

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

The division of productive activities among persons and regions so that no one individual or area is totally self-sufficient is known as

-Refer to the above figure.Which of the following statements is true?

Economists define technology as

Which of the following would result in a movement along the production possibilities curve?

What happens to overall living standards when countries trade with other countries?

Suppose the current unemployment rate is 15 percent.If it rises to 20 percent,

-In the above figure,the opportunity cost of moving from point D to point C is

A point inside a society's production possibilities curve represents

Suppose you have four choices-go to a movie,read a book,watch television,or go to a concert.You choose to go to a movie.The opportunity cost of the movie is

Which of the following are considered factors of production? I.Land II.Labor III.Physical capital IV.Entrepreneurship