Exam 2: Economic Tools and Economics Systems

At various points along the production possibilities frontier,

The typical concave (i.e., bowed-out)shape of the production possibilities frontier reflects the law of increasing opportunity cost.

The set of mechanisms and institutions that resolve the basic economic questions is called the

All of the following are evidence of specialization except

Exhibit 2-2 According to Exhibit 2-2, Hans' opportunity cost of typing one page is

Adam Smith's term, "the invisible hand, " refers to

The opportunity cost of going to college is best measured by the

Janis mows the lawn in 1 hour and types a paper in 1 hour.Kristen mows the lawn in 2 hours and types a paper in 2 hours.Which of the following statements is true?

The law of comparative advantage says that

The law of comparative advantage says that a person should produce a good if she

The opportunity cost of a particular activity

Which of the following would shift the production possibilities frontier outward?

Comparative advantage is based on opportunity costs.

The "rules of the game, " the set of conditions that shape individual incentives and constraints, are determined by

In one week, Mohammed can knit 5 sweaters or bake 240 cookies.In one week, Tetah can knit 15 sweaters or bake 480 cookies.Mohammed and Tetah would produce the maximum quantities of cookies and sweaters if

Specialization often leads to gains in productivity for society as a whole.

If you enjoy playing golf, the opportunity cost of cleaning your room

Specialization of labor

Exhibit 2-12 Maria and Hans Production Possibilities for Laundry and Typing According to Exhibit 2-12, in any given amount of time,

Just as resources are scarce for the individual,