Exam 2: The Economic Problem: Scarcity and Choice

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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars,

Economic growth shifts a society's production possibility frontier away from the origin.

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

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 B to Point A is

According to the theory of comparative advantage, specialization and free trade will benefit

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

Capital, as economists use the term,

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 A to Point B, ________ additional plasma TVs could be produced when the production of LCD TVs is reduced by 30.

The basic coordinating mechanism in a free-market system is

A poorly functioning government can do which of the following to an economy?

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 this society's production possibility frontier is represented by Panel C. The marginal rate of transformation of sailboats for surfboards is

Production decisions are centralized in a(n)

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 2.4 below to answer the questions that follow. Figure 2.4 -Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by

The "economic problem" is that given scarce resources, how do large societies go about answering the basic economic questions of what will be produced, how it will be produced, and who will get it.

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

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 is most likely to shift the production possibility frontier from ppf¹ to ppf²?

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

In a laissez-faire economy, ________ what gets produced, how it is produced, and who gets it.

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.