Exam 2: Some Tools of the Economist

Use the production possibilities data below to answer the following question(s). Table 2-3 -Refer to Table 2-3. The opportunity cost of 1 pound of potatoes for the rancher is

Which of the following activities describes the opportunity cost of attending an economics class?

If Sean sells Tom a tennis racket for $50, we would expect

Three basic decisions must be made by all economies. What are they?

A nation with cheap, efficient communications is likely to be

Which of the following most accurately states the economic significance of exchange?

Darryl can build picnic tables twice as fast as Trevon. Darryl can assemble swing sets three times as fast as Trevon. The law of comparative advantage suggests that

Which of the following is true?

In 2015, the number of workers per Social Security beneficiary was approximately ____; by the year 2030, this figure is expected to ____.

In order to prosper, entrepreneurs must

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

The law of comparative advantage suggests that

A production possibilities curve graphically represents the maximum quantities of two products produced when all resources in the economy are being used efficiently. If an economy operates at a point inside its production possibilities curve,

Which of the following most accurately states the economic significance of exchange?

Mateo values his camper at $4,000, and Nicole values it at $9,000. If Nicole buys it from Mateo for $7,000, which of the following is true?

Market economies are often criticized for how they answer the basic question, "For whom are goods produced?" This criticism usually comes from people who believe that the distribution of income is not "fair." Is there some way to separate production from distribution so that we can leave production just as it is but make the distribution of income "fairer"?

Which of the following is true of exchange?

A production possibilities curve graphically represents the maximum quantities of two products produced when all resources in the economy are efficiently utilized. An economy that operates inside this production possibilities curve

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that

Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?