Exam 2: Scarcity and the World of Trade-Offs

Which of the following sets of terms describes the problem of scarcity in economics?

A graphical representation which shows the trade-off that occurs when more of one output is obtained at the sacrifice of another is called

-In the above figure,the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is

When an economy is operating efficiently,which is true?

The most basic concept in economics is

From the economist's point of view,

-Based on the above figure,if countries "A" and "B" faced the production possibilities curves above,both countries would benefit if

All of society's applied knowledge on how to produce goods and services is

A point outside a production possibilities curve indicates

The accumulated training and education that you have is

-In the above figure,the production of 25 guitars and 25 ukuleles is

Which factor of production includes water?

An improvement in technology will shift the production possibilities curve

The high opportunity cost of voting in the United States is due to

The production possibilities curve shifts outward when

The trade-off between the present and future consumption is measured by

A technological improvement can cause the production possibilities curve to shift outward because

Comparative advantage is the ability to

-Refer to the above figure.Which of the following points indicates an efficient use of resources?

The production possibilities curve bows out because