Exam 2: The Economic Problem: Scarcity and Choice

Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6. Economic growth is represented by a

Related to the Economics in Practice on page 39: In the survey conducted by Esther Duflo and Abhijit Banerjee, the extremely poor were found to consume ________ of their budgets on food compared to people in the United States.

The concept of opportunity cost is based on the principle of

A society's production possibility frontier is bowed in from the origin due to specialized resources.

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 economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the

The idea that consumers ultimately dictate what will be produced by choosing what to purchase is known as

The government produces only what the market is willing to pay for.

Refer to the information provided in Figure 2.1 below to answer the questions that follow. Figure 2.1 -Refer to Figure 2.1. The shape of Macroland's production possibility frontier shows

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, which point cannot be produced with the current state of technology?

Which of the following statements is NOT true for a command economy?

Which of the following does NOT constitute an act of "investment" as economists use the term?

When two people trade,

When two people trade, one must lose.

An economy in which individual people and firms pursue their own self-interest without any central direction or regulation is a(n)

Related to the Economics in Practice on page 28: How did the introduction of the microwave in 1960 affect the market for frozen food?

Someone has a comparative advantage in producing a good if they can produce that good

The process by which resources are transformed into useful forms is

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by

Refer to the information provided in Figure 2.3 below to answer the questions that follow. Figure 2.3 -Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by

Which of the following is NOT true of a market economy?