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

Mikki decides to work five hours the night before her economics exam. She earns an extra $75, but her exam score is 10 points lower than it would have been had she stayed home and studied. Her opportunity cost is the:

Of factors which affect any economy's production potential, the best two listed below are:

Which of the following is true of the production possibilities curve?

If an economy is producing at full employment, it means that:

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

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

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

The process through which an economy's production possibilities curve shifts outward is:

The highest valued alternative that must be given up in order to choose an option is called the:

The most efficient point on the production possibilities curve is the midpoint on the curve.

Adding more resources causes:

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

A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than:

Exhibit 2-8  Production possibilities curve data As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:

Exhibit 2-16  Production possibilities curve In Exhibit 2-16, which of the following points on the production possibilities curve are efficient production points?

Which of the following is not true about a production possibilities curve? The curve:

A source of economic growth is:

The production possibility curve is bowed outward from the origin because of:

An outward shift of an economy's production possibilities curve is caused by:

A nation's current location on its production possibilities curve can determine the future location of that nation's production possibilities curve.