Exam 2: Choice, Opportunity Costs, and Specialization

If the resources within a nation are not being fully or efficiently utilized, it means:

Which economic concept is the closest parallel to the saying "There's no free lunch"?

Private property rights:

Which of the following conditions will be true for a nation operating at a point lying inside its production possibilities curve?

The table given below represents butter and ham production by two countries Norway and Sweden. Table 2.5 Tirne Spent Making Eutter Namay Sweden 100\% Butter 5 100 0\% Ham 10 100 -Refer to Table 2.5 and identify the correct statement.

It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations.

Which of the following will result in an outward shift of the production possibilities curve [PPC]?

If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:

Which of the following statements is true about comparative advantage?

If a nation specializes in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to:

Which of the following is related to the concept of trade-off used in economics?

If using the same resources, the U.S. workers can produce more of any good than Mexican workers, then the United States should produce every good.

The figure given below represents an economy producing corn and planes under different economic situations. Figure 2.2 -Refer to Figure 2.2. If there is an increase in the education level of the population, graph(s) _____ best illustrate(s) what will happen to the production possibilities curve [PPC].

When constructing a production possibility curve for an economy, which of the following is assumed to be constant?

Given a production possibilities curve for defense goods and nondefense goods, which of the following is not true?

Which of the following will bring about an inward shift of a production possibilities curve [PPC]?

Which of the following exemplifies a private property right?

The city of Austin can buy roads or light rail. If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million, what is the city's opportunity cost of 1000 miles of roads?

Opportunity cost is best defined as:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods cars and food. Figure 2.4 -Refer to Figure 2.4 and identify the correct statement.