Exam 2: Some Tools of the Economist

Use the production possibilities data below for Avokia and Baldonia to answer the following question(s). Table 2-2 Refer to Table 2-2. Which of the following is correct?

Figure 2-9 Refer to Figure 2-9. Suppose the economy is producing at point B. Which of the following statements would best explain this situation?

Figure 2-9 Refer to Figure 2-9. If the economy moves from point A to point D, the opportunity cost is

Air travel from New York to Miami costs $300 and takes 6 hours. A bus ticket between the cities costs $150 and takes 56 hours. Other things constant, the minimum value of one's time that would induce a rational individual to fly rather than drive would be

Given your knowledge of the incentives created by private ownership, which of the following would you expect to be false ?

A system of economic organization in which the ownership and control of productive capital assets rests with the state and in which resources are allocated through central planning and political decision making is called

If the citizens of a country were to work harder and take less leisure time, it would

In Africa, which of the following policies has been most successful at increasing elephant populations?

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

A department store buys a wool coat for $120 and sets its retail price at $300. The coat costs $85 to produce. When the coat doesn't sell, the store marks the price down to $200, then $100, and finally $70. At $70, Amy buys the coat. What was the coat's true value? Why?

The law of comparative advantage indicates that

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

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

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

Figure 2-9 Refer to Figure 2-9. The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is

The creation of a new product or process, often facilitated by the knowledge of engineering and scientific relationships, is known as

Based on the idea of opportunity cost, which of the following students would be most likely to drop out of college before completing their degree?

The reason that the production possibilities curve is usually a bow-shaped curve instead of a straight line is that

Use the figure to answer the following question. Figure 2-11 In Figure 2-11, which shows the production possibilities curve,

Figure 2-4 Which of the following is true of Figure 2-4?