Exam 2: The Economic Problem: Scarcity and Choice

The marginal rate of transformation is the

Comparative advantage refers to the ability to produce at a lower opportunity cost than a competitor.

Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6. Which of the following will shift an economy's production possibility frontier from ppf1 to ppf2?

An example of an investment is

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, a decrease in unemployment may be represented by the movement from

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 Krystal Mark Writing Poerns 8 12 Writing TV Comrnercials 2 4 -Refer to Table 2.1. For Mark, the opportunity cost of writing six TV commercials is ________ poems made.

Consider two countries, Japan and Malaysia. Japan devotes a smaller portion of its production to capital. All other things equal, which of the following statements is most likely true?

Consumer sovereignty

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 Krystal Mark Writing Poerns 8 12 Writing TV Comrnercials 2 4 -Refer to Table 2.1. For Mark, the opportunity cost of writing one TV commercial is

Which of the following statements is false?

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is

The economic problem can best be stated as

Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6. An improvement in technology may be represented by a

During the Iraq War, many of Iraq's oil refineries were destroyed. This would best be represented by a

Suppose you are deciding whether to spend your tax rebate check on a new iPod player or a new digital camera. You are dealing with the concept of

The production possibility frontier is a graph that shows

A laissez-faire economy is one in which individual people and firms pursue their own self-interest without any central direction or regulation.

Economic growth shifts a society's production possibility frontier away from the origin.

A command economy is one in which a central government sets output targets, incomes and prices.

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, the point where only hybrid cars are produced is