ECON Chapter 2 example #70779

The existence of scarcity requires

Which of the following is not generally considered to be a resource? (factor of? production)? A. Upper A small business owner B. Upper A bond issued by the Chrysler Corporation C. Upper A college professor D. Upper A copper mine

Why do economists avoid making the distinction between wants and needs??

Each individual must make choices because

Opportunity cost is best defined as the _________ ?alternative(s) that must be sacrificed to obtain something or to satisfy a want.

What is the difference between absolute advantage and comparative? advantage?

The division of labor increases the output of society by

Which of the following statements is? true? A. Everyone can benefit when people specialize where they have a comparative advantage and then trade with each other. B. Specialization affects international trade but not interstate trade. C. Specialization affects interstate trade but not international trade. D. Comparative advantage applies to nations but not to people.

Italy and Singapore are countries that trade with each other. If ItalyItaly has a comparative advantage in cell phones and Singapore has a comparative advantage in hat?, which of the following is a correct statement about the effects of trade between these? nations? A. Both countries are likely to be better? off, and world production will increase. B.There will be a net loss of employment in Singapore. C. Both countries will lose jobs through trade and be worse off. D. Italy will lose jobs in the cell phone industry.

The graph shows a production possibilities curve for a student who currently spends 8 hours a week studying. How could the student get a B in both? classes? A. The student cannot get a B in both classes. B. The student spends more time studying economics than marketing. C. The student could study more than 8 hours a week. D. The student could spend more time studying marketing than economics.

Factors of production include

When an individual proclaims the need for a new? car, the person typically means

Education increases the stock of which factor of? production?

Human beings

* (W)Opportunity cost

* (W)7.Which of the following sets of terms describes the problem of scarcity in? economics?

The production possibilities curve represents the maximum feasible production combinations resulting from

* (W)According to the law of increasing additional? cost, the opportunity cost of producing

15. If a country is currently producing inside its production possibilities? curve,

16. If the production of capital goods is shown along the horizontal axis of a production possibilities? curve, and the production of consumer goods is shown along the vertical axis of a production possibilities? curve, and the economy desires to have a rapid rate of economic? growth, then the economy should produce at a point

17. The division of labor refers to

19. John and Mary work at a bakery. John can decorate either 10? ice-cream cakes or 4 wedding? cakes; Mary can decorate either 8? ice-cream cakes or 2 wedding cakes. According to this? scenario,

20. Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of? efficiency, what is the desirable? outcome?

1. Which of the following is not generally considered to be a resource? (factor of? production)?

2. Many state governments claim a shortage of funds because there are? "unmet needs." This claim is

* (W)3. Scarcity implies that

4. Economists are concerned with an? individual's

Kyla is buying clothes. She can choose between a red dress?, a blue sweater and black jeans. She? doesn't like black jeans?, and after some? thought, she chooses a red dress. What is the opportunity cost of this? choice?

A production possibilities curve represents

The opportunity cost of going to college full time away from home includes A. the income you could have earned from a fullminus?time job. B. the funds you would have saved if you had not paid the tuition. C. the time you could have spent with friends back home. D. All of the above are correct.

8. A graphical representation which shows the trademinus?off that occurs when more of one output is obtained at the sacrifice of another is called

11. The law of increasing relative costs is due to

* (W) 12. Which of the following is assumed when constructing a production possibilities? curve?

13. Using the diagram to the? right, click on the point labeled ?'S?' and drag the ?'savings?' slider to the right ?(denotes the production of more capital goods?). Use this to help answer the question below. If a country devotes more resources toward the production of capital goods and less toward consumer goods then A. that country will not experience any growth. B. that country will experience greater economic growth. C. that country will experience unemployment. D. scarcity will increase.

14. A country produces pearspears and ricerice. ?1.) Using the? 3-point curved line drawing tool?, draw a representative PPC for this country. Label it PPC1. ?2.) Suppose that a breakthrough in technology makes all agriculture more productive. Using the? 3-point curved line drawing tool?, draw a new PPC showing the effect of this change. Label it PPC2. Carefully follow the instructions? above, and only draw the required objects.

15. Economic growth appears on a production possibilities curve as the curve shifting out away from the origin. B. the points outside the production possibilities curve. C. the curve shifting in toward the origin. D. a change in the slope of the curve.

16. Using productive resources to make capital goods requires that we

18. Specialization of labor and trade yield greater economic efficiency when applied to interstate? trade,

17. StefanieStefanie can make 77 dozen cookiesdozen cookies or 1 peach tartpeach tart in one hour. CurtisCurtis can make 44 dozen cookiesdozen cookies or 1 peach tartpeach tart in one hour. Based on this? information, which of the following is a true? statement? A. StefanieStefanie has a comparative advantage in making peach tartspeach tarts. B. CurtisCurtis has an absolute advantage in making cookiescookies. C. StefanieStefanie has a comparative advantage in making cookiescookies. D. CurtisCurtis has a comparative advantage in making cookiescookies.

The ability to produce a good at a lower opportunity cost than others is known as

20.The reason that most of the coffee that is consumed in the United States comes from Colombia is that A. Colombia has an absolute advantage in producing coffee relative to the United States. B. Colombia has a comparative advantage in producing coffee relative to the United States. C. government trade disincentives regarding Colombian coffee make such trade possible. D. coffee cannot be grown in the United States.

Danny goes to a military academy to become a soldier. This is an example of

3. At a zero? price, which of the following conditions is TRUE for an economic? good?

4. Why is it that all of our wants cannot be? satisfied?

5. If you receive a free ticket to a? concert, what, if? anything, is your opportunity cost of attending the? concert? If miserable weather on the night of the concert requires you to leave much earlier for the concert hall and greatly extends the time it takes to get home? afterward, the opportunity cost of attending the concert ________

6. Based on the information provided in the table to the? right, the opportunity cost to this student of allocating enough additional study time on economics to move her grade up from a 90 to a 100 is a reduction in her biology grade of 10 points.

7. Opportunity cost is

10. A production possibilities curve that is bowed outward? (from the? origin) represents the concept that

12. Some resources are better suited to produce certain goods than other resources. This fact leads to

Whenever a society forgoes current consumption in order to invest in capital? goods,

16. ?Generally, if a nation produces more consumer goods than capital goods

18. Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United States often seeks protection from food imports from Canada. From an economywide? viewpoint, these efforts are

Which of the following is TRUE about comparative? advantage?