Exam 2: Production Possibilities, Opportunity Cost, and Economic Growth

An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:

Opportunity cost is the best alternative sacrificed for a chosen alternative.

Exhibit 2-13 Production possibilities curve -In Exhibit 2-13, if the economy decides to locate at point E, then:

Exhibit 2-5 Production possibilities curve -In Exhibit 2-5, movement between which of the following points represents an increase in economic efficiency?

Exhibit 2-10 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumption goods 25 23 19 13 0 -Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

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

Economic growth may be represented by a(n):

Exhibit 2-8 Production possibilities curve data A B C D E F Capital goods 15 14 12 9 5 0 Consume goods 0 2 4 6 8 10 -As shown in Exhibit 2-8, a total output of 0 units of capital goods and 10 units of consumer goods is:

Exhibit 2-19 Production possibilities curves -In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Which of the following could have caused a shift for Year X to Year Y in production possibilities curves?

Technological innovations will cause:

When an economy's resources are not fully employed, then it must be true that the:

If more of one good can be produced without producing less of another output, the economy must have been operating efficiently.

Robinson Crusoe's decision to produce more capital goods and fewer consumer goods in a given period causes:

What shape is the production possibilities curve usually expected to exhibit?

The opportunity cost of producing a good or service is the good or service that is foregone by choosing to produce another good with the same resources in a given period of time.

A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:

Exhibit 2-13 Production possibilities curve -In Exhibit 2-13, point D:

Exhibit 2-9 Production possibilities curve -Which of the following moves from one point to another in Exhibit 2-9 would represent an increase in economic efficiency?

The opportunity cost of an economic decision is:

Exhibit 2-2 Production possibilities curve -In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is: