Exam 1: Economics: the Core Issues

If North Korea is currently producing at efficiency,and it proceeds to increase the size of its military,then,as long as nothing else changes,its

The Latin phrase ceteris paribus means

Opportunity cost is a theoretical concept with no practical application.

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus. Table 1.2 Production Possibilities for Bombers Combination Number of B- 1 Bombers Opportunity cost(Foregone Stealth) Number of Stealth Bombers Opportunity cost (Foregone B-1) A 20 NA 195 B 35 180 C 45 150 D 50 100 NA On the basis of your calculations in Table 1.2,what is gained by producing at point B rather than point C?

If an economy experiences increasing opportunity costs with respect to two goods,then the production possibilities curve between the two goods will be

Why do opportunity costs increase as society produces more of a good?

Refer to Figure 1.7.Which of the following points are considered to be inefficient?

Refer to Figure 1.7.Which of the following points show unemployment of resources above the normal rate?

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus. Table 1.3 Production Possibilities for Brushes and Combs Combination Number of Brushes Opportunity Cost of Brushes in Terms of Combs Number of Combs Opportunity Cost of Combs in Terms of Brushes 0 4 10 3 17 2 21 1 23 0 Table 1.3 Production Possibilities for Brushes and Combs Combination Number of combs Opportunity Cost(Foregone brushes) Number of brushes Opportunity Cost (Foregone combs) 4 0 NA 3 10 2 17 1 21 0 NA 23 On the basis of Table 1.3,what is the opportunity cost of producing at point M rather than point N?

Using Figure 1.3 and PP1,at point A,

An increase in the proportion of the population that is unemployed above the normal rate is best represented in Figure 1.3 and using PP1 by a movement from point

At which point is society employing some of its available technology but not all of it? (See Figure 1.1. )

If an economy experiences constant opportunity costs with respect to two goods,then the production possibilities curve between the two goods will be?

Using Figure 1.6,if an economy has the capacity to produce represented by PP1,then point E represents

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus. Table 1.1 Production Possibilities for Bombers Combination Number of B- 1 Bombers Opportunity cost(Foregone Stealth) Number of Stealth Bombers Opportunity cost (Foregone B-1) 0 NA 10 1 9 2 7 3 4 NA On the basis of Table 1.1,you may infer that the law of increasing opportunity costs applies to increasing production of

Which of the following is not a macroeconomic statement?

The "guns versus butter" dilemma that all nations confront is that

The doctrine of laissez faire is based on the belief that

Capital,as economists use the term,refers to

Scarcity results when available resources cannot satisfy all desired uses of those resources.