Exam 2: The Economic Problem: Scarcity and Choice

Assume a society can produce either beer or wine. If the marginal rate of transformation of gallons of beer into gallons of wine is 0.5, then the opportunity cost of wine is

In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?

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

If the unemployment rate increases from 10% to 14%, the economy will

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

Related to the Economics in Practice on p. 35: In all societies, resources are limited relative to people's demands, and there are ________ trade-offs individuals face in rich countries versus poor countries.

Refer to the information provided in Table 2.2 below to answer the following questions. Table 2.2 -Refer to Table 2.2. To maximize total production,

The amount that ________ have accumulated out of past income through saving and inheritance is wealth.

Economic growth may occur when

Economic growth most likely occurs when

Among the resources used in production are labor and capital.

The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people.

From 1935 to 2009, the yield per acre for corn has ________ in the United States.

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of plasma TVs is reduced by 20.

Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the questions that follow. Figure 2.2 -Refer to Figure 2.2. If Microland's economy is at Point A, it could produce more consumer goods

Refer to the information provided in Table 2.2 below to answer the following questions. Table 2.2 -According to the theory of comparative advantage, trade and specialization ________ productivity by ________ opportunity costs.

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 not cause the production possibility frontier to shift from ppf¹ to ppf²?

Refer to the information provided in Figure 2.3 below to answer the questions that follow. Figure 2.3 -Refer to Figure 2.3. Increasing opportunity costs are best depicted by the production possibility frontier in Panel

Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the questions that follow. Figure 2.2 -Refer to Figure 2.2. Microland is currently operating at Point B. You correctly deduce that

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 increase in the economy's capital stock is represented by a