Exam 2: Scarcity, choice, and Economic Systems

If the economy is producing a combination of goods inside its production possibilities frontier,then

If an economy's production possibilities frontier shifted to the right,this would illustrate

Figure 2-8 -Assume that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.Curve FG in Figure 2-8 represents the current production possibilities frontier for cotton and wheat.What could cause the production possibilities frontier to shift from FG to FH?

In a market economy,

The system of resource allocation in the United States is a

An economy is said to be saving lives efficiently

The production possibilities frontier illustrates

In a market economy,most of what we consume is obtained by

A country currently is using all its land to produce wheat and grapes.However,the land most suited to growing grapes is being used to produce wheat,and the land most suited to growing wheat is being used to produce grapes.Which of the following statements is true?

Productivity efficiency in saving lives

Assume that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.Agricultural researchers develop a new wheat hybrid that is more resistant to drought and insects.What effect will this have on the production possibilities frontier for cotton and wheat?

When all resources used in production are not perfectly substitutable,

Which of the following best defines the specialization of resources?

Suppose that the United States has an absolute advantage over Mexico in producing both agricultural and manufactured goods.In the U.S. ,the opportunity cost of 1 unit of agricultural output is 2 units of manufactured goods.In Mexico,the opportunity cost of 1 unit of agricultural output is 1.5 units of manufactured goods.Total production in the U.S.and Mexico will be maximized if

-According to the information in Figure 2-11,

Figure 2-8 -The production possibility frontier in Figure 2-8 assumes that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.This is an example of a(n)

One of the concepts that is illustrated by a downward sloping production possibilities frontier is that

Figure 2-3 -Figure 2-3 shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes.The opportunity cost of moving from point B to C is

According to the law of comparative advantage,individuals and economies should specialize in producing those goods and services in which they have a comparative advantage.

-Using the information in Figure 2-11,Jill's opportunity cost of fetching each additional pail is