Exam 1: Economics: the Core Issues

In Figure 1.6,at which of the following points would the opportunity cost of producing one more car be the lowest?

In Figure 1.3,a shift of the production possibilities curve from PP1 to PP2 could be caused by

In economics,scarcity means that

Refer to the World View article titled "North Korea's Food Shortage Grows." On a production possibilities curve between private and public goods,a decrease in military spending in an effort to increase food production could be represented as

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 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 Table 1.3,what is gained from producing at point L rather than point K?

The slope of a curve at any point is given by this formula:

Which of the following is not one of the three core economic issues that must be resolved?

Refer to Figure 1.7.The cost of producing at point G rather than point D is

At which point might society be able to produce if new resources were discovered but cannot produce with current resources? (See Figure 1.1. )

According to the law of increasing opportunity costs,

The study of microeconomic theory focuses on

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 In the production range of 7 to 9 Stealth bombers,the opportunity cost of producing 1 more Stealth bomber in terms of B-1s is

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 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 Table 1.3,what is gained by producing at point M rather than point N?

A city's decision to limit smoking in public areas is an example of

Refer to Figure 1.7.This economy will achieve efficiency in production at

In Figure 1.4,a shift of the production possibilities curve from PP1 to PP2 could be caused by

Microeconomics is concerned with individual performance as well as the economy as a whole.

Which of the following is true when an economy is producing efficiently?

The essential feature of the market mechanism is the price signal.

The fundamental problem of economics is