Exam 2: Some Tools of the Economist

The current Social Security system works to the disadvantage of blacks primarily because the

Which of the following sayings best reflects the concept of opportunity cost?

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s). Table 2-2 -Refer to Table 2-2. According to the law of comparative advantage, both Honduras and Nicaragua could gain if

The previous surplus of the Social Security system is expected to become a deficit because the

It can be said that, ultimately, consumers are the driving force in answering the three basic economic questions. Explain the consumer's role in providing these answers.

Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?

If the U.S. economy grew rapidly in the future, would this eliminate the long run deficit of Social Security?

Suppose the price of an airline ticket from Dallas to Boston costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than

After the terrorist attacks on September 11, 2001, the United States began devoting substantial resources toward the War on Terrorism, homeland security, and relief efforts. Use the production possibilities curve to demonstrate how this might affect the production of other goods in the United States.

Use the production possibilities data below for Austria and Italy to answer the following question(s). Table 2-1 -Refer to Table 2-1. Which of the following is true?

Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours. His expected income from each hour of work in Atlanta is $30. If Maurice is a rational decision maker, he will fly if and only if the price differential (air cost minus driving cost) is less than

A popular video program used to teach economics to primary school children defines opportunity cost as "what you give up to get something." In light of your understanding of opportunity cost, how would you modify this definition?

The net value to the federal government of the bonds currently held in the Social Security Trust Fund is

In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?

Suppose a country attempts to be self-sufficient and doesn't trade with any other countries. From an economic perspective, citizens of this nation can be expected to

The Social Security Trust Fund

Demographic conditions

In economics, the term for a person who reduces transaction costs by arranging trades for buyers and sellers is

With time, which one of the following strategies will most likely result in an outward shift in an economy's production possibilities curve?

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 meat for the farmer is