Exam 2: Some Tools of the Economist

The opportunity cost of building a park in your hometown would be the

Which of the following would be most likely to increase your opportunity cost of attending college?

Table 2-3 -Refer to Table 2-3. The opportunity cost of 1 pound of meat for the farmer is

Table 2-1 -Refer to Table 2-1. Which of the following is true?

A middleman is a person who

A point outside the production possibilities curve represents a combination of goods that is

Even countries that depend primarily on market forces to resolve the basic economic questions will usually rely on the collective decision-making process to

High transaction costs will tend to

Figure 2-6 -Which of the following will most likely shift the production possibilities curve for breadfruit and fish outward from AA to BB in Figure 2-6?

Figure 2-10 -Refer to Figure 2-10. If the economy moves from point C to point B, then which of the following statements is correct?

A ticket to a concert costs $45. You have a ticket and can resell it for $75. Your opportunity cost of actually attending the concert is

The process by which new products and methods of production are continuously replacing old ones is known as

If Terrell can produce more bagels in one day than Zori can produce in one day, then

A system of economic organization in which the ownership and control of productive capital assets rests with the state and in which resources are allocated through central planning and political decision making is called

The creation of a new product or process, often facilitated by the knowledge of engineering and scientific relationships, is known as

Compared to a situation where transaction costs are zero, the existence of transaction costs

Figure 2-1 -In Figure 2-1, point A isB.

The opportunity cost of an option

The opportunity cost of an activity

Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as