Exam 2: Scarcity, choice, and Economic Systems

If Japan could produce more steel in a year than the United States using the same amount of resources,then

Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn.Renee needs 1 hour to wash the car and 2 hours to mow the lawn.Which of the following statements is correct?

By better utilizing existing resources,an economy can produce at a point outside of its current production possibilities frontier.

Figure 2-13 Total Lives Saved -Referring to Figure 2-13,if you had to choose how to allocated $5 million and your objective was to save the most lives,you would observe that there is

Figure 2-3 -Which point in Figure 2-3 is not possible for this society to produce?

An economic system includes

The principle of comparative advantage says that

Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn.Renee needs 1 hour to wash the car and 2 hours to mow the lawn.Which of the following statements is correct?

Figure 2-7 -Which of the following could explain the shift in the production possibilities frontier from AB to AC in Figure 2-7?

Figure 2-1 -Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time.What is the opportunity cost for this person of moving from point a to point b?

We say that a particular life saving method is efficient

An economy with a government planning commission that provides explicit instructions for resource allocation is an example of

Bill can cook dinner in 45 minutes and mow the lawn in 1.5 hours.Eileen can cook dinner in 1.5 hours and mow the lawn in 2 hours.Which of the following statements is correct?

If Indiana has an absolute advantage over Maine in producing both corn and ball bearings,then

If Arthur has a comparative advantage in sewing and Susan has a comparative advantage in accounting,then

Figure 2-2 -Assume that U.S.agricultural land is used either to raise cattle for beef or to grow wheat.Figure 2-2 represents the production possibility frontier for beef and wheat.Between points F and G,the opportunity cost increasing wheat by two bushels equals

Combinations of goods outside the production possibilities curve

Figure 2-12 -Suppose Bob and Tom are writing jokes for a their new TV show.Suppose there are two types of jokes,political jokes and jokes about celebrities.The number of jokes that can be produced by each person in each category are listed in Figure 2-12.From this table you can tell that

Figure 2-9 -Which of the following statements could explain the concave shape of the production possibilities curve in Figure 2-9?

The principle of comparative advantage states that