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

Exhibit 2-10 Production possibilities curve data Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are produced, the opportunity cost in terms of sacrificed units of consumption goods ____ because of ____.

Because of the problem of scarcity, each economic system must make which of the following choices?

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

Economic growth may be represented by a(n):

Exhibit 2-1 Production possibilities curve data In Exhibit 2-1, the opportunity cost of producing the fourth unit of capital is:

Exhibit 2-16 Production possibilities curve In Exhibit 2-16, which of the following points on the production possibilities curve are unattainable with the resources and technology currently available?

In economics terminology, the process of accumulating money is investment.

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

The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:

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

Exhibit 2-17 Production possibilities curve In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC)as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:

The opportunity cost of watching television is:

Exhibit 2-13 Production possibilities curve In Exhibit 2-13, the combination of goods given by point H could:

Exhibit 2-10 Production possibilities curve data Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. If this economy chooses the combination of goods at point A,

An efficient economy:

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located:

Exhibit 2-4 Production possibilities curve data According to the data in Exhibit 2-4, a total output of 140 units of consumer goods and 10 units of capital goods would:

Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?

Exhibit 2-10 Production possibilities curve data 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.

Reductions in available resources will cause the production possibilities curve to: