Exam 2: The Economic Problem: Scarcity and Choice

The amount that households have accumulated out of past income through saving and inheritance is

Refer to the information provided in Table 2.2 below to answer the following questions. Table 2.2 -Refer to Table 2.2. For Molly, the opportunity cost of designing one tattoo is

Economists refer to things that have already been produced that are in turn used to produce other goods and services as

Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of olives is

Refer to the information provided in Table 2.2 below to answer the following questions. Table 2.2 -Refer to Table 2.2. For Pete, the opportunity cost of designing one tattoo is

Refer to the information provided in Table 2.2 below to answer the following questions. Table 2.2 -Refer to Table 2.2. For Pete, the opportunity cost of designing three tattoos is ________ avatar designs.

Some economists advocate government intervention in a market economy when resource costs for a private producer ________ to society.

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 motorcycles are produced 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

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

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

Outputs in the production process are

In economics, the term capital refers only to some form of money.

Resources are also referred to as outputs.

Specialization and trade exploit differences in productivity across workers and

Related to the Economics in Practice on page 25: Which one of the following occurs when an individual enters the paid work force?

A society's production possibility frontier is bowed out from the origin because some resources are better suited for producing one good as opposed to the other.

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 Panel

The marginal rate of transformation is the slope of the production possibility frontier.

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. Full resource employment and production efficiency is represented by a point