Exam 2: The Economic Problem: Scarcity and Choice

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 -Refer to Table 2.1.For Mark,the opportunity cost of writing six TV commercials is ________ poems made.

Outputs in the production process are

If an economy begins to use its resources more efficiently,it will move

Which of the following is NOT a resource as the term is used by economists?

The basic coordinating mechanism in a free market system is

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

Which of the following statements is FALSE?

The production possibility frontier is used to illustrate the concept of

If resources are combined efficiently in production,then the society

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

The process by which resources are transformed into useful forms is

In a free market system,the amount of output that any one household gets depends on its

The opportunity cost of investment in capital is forgone present consumption because

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

Comparative advantage refers to the ability to produce better quality goods than a competitor.

Consumer sovereignty

Refer to the information provided in Figure 2.1 below to answer the questions that follow. Figure 2.1 -Refer to Figure 2.1.Macroland is currently operating at Point A.The best explanation for this is that

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 -Refer to Table 2.1.For Mark,the opportunity cost of writing one TV commercial is

Which of the following statements is FALSE?

Some economists advocate government intervention in a market economy