Exam 2: The Economic Problem: Scarcity and Choice

As you move down the production possibility frontier,the absolute value of the marginal rate of transformation

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

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

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

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

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

The notion that buyers determine what will be produced by choosing what they purchase is called consumer sovereignty.

In terms of the production possibility frontier,an increase in productivity attributable to new technology would best be shown by

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

A society can produce two goods: donuts and beer.The society's production possibility frontier is negatively sloped and "bowed outward" from the origin.As this society moves down its production possibility frontier,producing more and more units of donuts,the opportunity cost of producing beer

Related to the Economics in Practice on p.39: The results of the survey conducted by Esther Duflo and Abhijit Banerjee found that in extremely poor societies,

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

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4,as the economy moves from Point E to Point A,the opportunity cost of hybrid cars,measured in terms of motorcycles,

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?

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

Production inefficiency occurs

Things that have already been produced that are in turn used to produce other goods and services over time are called "capital."

An improvement in technology will cause the

Which of the following would an economist classify as capital?