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

Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?

Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2i) watch two half-hour TV sitcoms, (3) play pool, and (4) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information?  ​

One source of economic growth is:

A good or service that is forgone by choosing one alternative over another is called a(n):

Exhibit 2-6  Production possibilities curve data In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:

Exhibit 2-15  Production possibilities curve In Exhibit 2-15, inefficient resource use is shown by which of the following points?

If some resources were used inefficiently, the economy would operate outside its production possibilities curve.

Which of the following statements is false ?

Exhibit 2-11  Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

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

Exhibit 2-13  Production possibilities curve In Exhibit 2-13, in terms of efficiency:

A production possibility graph slopes down because of:

All points on the production possibilities curve are:

When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:

Exhibit 2-8  Production possibilities curve data As shown in Exhibit 2-8, a total output of 14 units of consumer goods and 1 unit of capital goods is:

Marginal analysis applies only when there are additions to a current situation.

Of all the points on the production possibilities curve, only one point represents an efficient point.

Exhibit 2-18  Production possibilities curves In Exhibit 2-18, a country is located at point A on its Year X production possibilities curve. In Year Y this same country is located at point B on its Year Y production possibilities curve. Which of the following could have brought about this outward shift in production possibilities curves?

Exhibit 2-9  Production possibilities curve Movement along this production possibilities curve shown in Exhibit 2-9 indicates:

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