Exam 2: Economic Tools and Economic Systems.

Exhibit 2.2 ​ -Refer to Exhibit 2.2, which shows the production possibilities frontier for Good A and Good B. When moving from point g to point f, the production of _____

What is the opportunity cost of an item?

The economic question of what will be produced _____

If Sam can chop more carrots per minute than Joe can, then _____

If Daniel produces one pair of shoes in 4 hours and Sarah produces one pair of shoes in 3 hours, then _____

It is possible for one person to have a comparative advantage in the production of all products.

On a bowed-out production possibilities frontier that shows the possible output levels of Good A and Good B, the opportunity cost of producing the first 10 units of Good A will usually be _____

Which of the following is measured along an axis of the production possibilities frontier diagram?

Charging interest is banned under Islamic law. This is an example of an economy that is _____

The opportunity cost of an activity _____

Exhibit 2.2 ​ -Refer to Exhibit 2.2, which shows the production possibilities frontier for Good A and Good B. If all of the economy's resources are used efficiently to produce only Good A, then the economy will be at point _____.

Each point along a nation's production possibilities frontier represents efficient use of all resources.

In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Sami and Leila would produce the maximum quantities of both cookies and sweaters if _____

The set of mechanisms and institutions that resolve the questions of what, how, and for whom goods are produced is called the _____

Table 2.1 Table 2.1 Item Movie \ 0 \ 10 \ 20 \ 30 \ 40 Restaurant \ 40 \ 30 \ 20 \ 10 \ 0 -Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. What is the opportunity cost of Option C?

Getting the most from available resources is known as _____

Table 2.3 Table 2.3 Products A B C D E Capital goods 0 1 2 3 4 Consumer goods 40 35 20 7 0 -Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. If this economy produced 4 units of capital goods, what can be stated of its production of consumer goods?

If Evan has an absolute advantage in cleaning and bookkeeping when compared to Gloria, then _____

A production possibilities frontier will shift outward if there is an improvement in technology.

You realize that total output would fall if you did some of the typing and ironing and your roommate did some of the typing and ironing. You are each _____