Exam 2: Some Tools of the Economist

Which of the following would be most likely to increase your opportunity cost of attending college?

In a market economy,

Even countries that depend primarily on market forces to resolve the basic economic questions will usually rely on the collective decision-making process to

Figure 2-10 Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?

Explain the idea of capital investment by using the story of Robinson Crusoe. What is sacrificed, and what is gained?

Use the production possibilities data below to answer the following question(s). Table 2-3 Refer to Table 2-3. The opportunity cost of 1 pound of meat for the farmer is

It can be said that, ultimately, consumers are the driving force in answering the three basic economic questions. Explain the consumer's role in providing these answers.

Abigail wishes to spend more time this week studying for her classes. Using the idea of a production possibilities curve, and assuming Abigail is currently spending all of her time efficiently, Abigail can spend more time studying this week only if

Darryl can build picnic tables twice as fast as Trevon. Darryl can assemble swing sets three times as fast as Trevon. The law of comparative advantage suggests that

Statistical data provided by the U.S. Department of Transportation shows that the median income of individuals traveling on the nation's bus systems is $18,000 compared to $65,000 for those who normally travel by air. This finding is best explained by which of the following statements?

Use the production possibilities data below to answer the following question(s). Table 2-3 Refer to Table 2-3. The rancher has a comparative advantage in

The law of comparative advantage implies that a nation, individual, or region should produce those economic goods for which it

Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?

If an economy uses its resources inefficiently, this situation would be illustrated on a production possibilities diagram as

Retired persons travel by bus and automobile more frequently than do business executives, who more commonly use air travel. An economic explanation for this would be that

Which of the following is true of private ownership?

The law of comparative advantage indicates that

Figure 2-8 Points A, B, and C in Figure 2-8 indicate consumption and investment for three economies. Other things constant, which of the economies is likely to grow more rapidly in the future?

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that

Which of the following activities describes the opportunity cost of attending an economics class?