Exam 2: Production possibilities and opportunity cost

The law of increasing opportunity costs states that:

The opportunity cost of watching a movie is the:

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

Assuming an economy is already experiencing full employment,then it must produce more consumer goods and fewer capital goods if it wishes to experience greater rates of economic growth over time.

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

Exhibit 2-3 Production possibilities curve data -According to the data in Exhibit 2-3,a total output of 140 units of consumer goods and 10 units of capital goods would:

Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?

Government supports research and development programs because:

Which of the following does not illustrate opportunity cost?

Technological innovations will cause:

Exhibit 2-9 Production possibilities frontier -In Exhibit 2-9,if the economy decides to locate at point E,then:

Which of the following is true about a production possibilities curve? The curve:

The opportunity cost of good A has increased,as resources that are shifted from the production of good B to good A are less efficient in the production of good A.

The theory of comparative advantage suggests:

When the production possibilities curve is bowed out,resources are:

Exhibit 2-4 Production possibilities curve data -In Exhibit 2-4,the concept of increasing opportunity costs is represented by the fact that:

The production possibilities curve is:

What are the advantages of specialisation?

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

The production possibilities frontier shows different combinations of two goods: