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

Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, are necessary for economic growth.

Which of the following causes the production possibilities curve to shift to the right?

Which of the following would not lead to a shift in an economy's production possibilities curve?

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

Which word or phrase best completes the following sentence? Marginal analysis means evaluating _________ changes from a current situation. ​

Marginal analysis means evaluating a current situation that does not change.

Which of the following sayings best reflects the concept of opportunity cost?

Which of the following would most likely cause the production possibilities curve for DVDs and food to shift outward?

If an economy keeps increasing its capital stock, then over time its production possibilities curve will:

Exhibit 2-7  Production possibilities curve For the economy shown in Exhibit 2-7, which of the following is true when the economy is at point A?

The production possibilities curve demonstrates the basic economic principle that:

Exhibit 2-16  Production possibilities curve In Exhibit 2-16, to move from U to B, the opportunity cost:

Exhibit 2-7  Production possibilities curve For the economy shown in Exhibit 2-7 to operate at point C, it must:

Over time, an increase in a nation's stock of physical capital will:

Exhibit 2-15  Production possibilities curve In Exhibit 2-15, if the economy produces no capital goods, what is the maximum number of consumer goods that can be produced?

Which of the following cause(s) economic growth?

The opportunity cost to a city for using local tax revenues to construct a new park is the:

Which of the following does not illustrate opportunity cost?

A point outside a production possibilities curve reflects:

What can a nation do to increase its economic growth? Why is economic growth among the major national economic goals of all countries?