Exam 2: Some Tools of the Economist

On average, persons with more education tend to draw Social Security benefits for a

The law of comparative advantage explains why

Which of the following about Social Security is true?

Based on the idea of opportunity cost, which of the following students would be most likely to drop out of college before completing their degree?

Figure 2-9 -Refer to Figure 2-9. The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is

The payments made to the beneficiaries of the Social Security program are financed by

Middlemen, such as grocers, stockbrokers, and realtors

Figure 2-10 -Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?

"Now that Terrance paints the broad surfaces and I do the trim work, we can paint a house in three-fourths the time that it took for each of us to do both." This statement most clearly reflects

Trade creates value by

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

Over time, an increase in a nation's stock of physical capital will

Entrepreneurs have a strong incentive to

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

Which of the following is true with regard to value and exchange?

Which of the following about Social Security is true?

Which of the following about trade is true?

Which of the following will most likely occur under a system of clearly defined and enforced private property rights?

Which of the following most accurately reflects the opportunity cost to a pharmacist who drives a taxi?

Economic thinking suggests that a nation in which middlemen are considered to be unproductive seekers of profit, and where their activities are heavily restricted by law, will