Exam 2: Scarcity, choice, and Economic Systems

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

Every economic system requires a means for determining resource allocation.

Specialization and exchange result in

Maximizing output by following the principle of comparative advantage requires

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 b to point a?

An economic system in which resources are privately owned and allocated by the market is called

If Alicia limits the range of her productive activities rather than trying to be self-sufficient,she is engaging in

If capital is not being used efficiently,an economy cannot be operating at a point along its production possibilities frontier.

Under a market system of resource allocation

Figure 2-10 -Movement from point K on the production possibilities curve for food and clothing in Figure 2-10,to point J inside the curve could be the result of

One way to increase economic efficiency in saving lives is to

When individuals concentrate on a limited number of productive activities,this is known as

As a society produces more and more of one good,it must give up increasing amounts of the alternative good.This demonstrates the

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.Production at point H is

According to the law of increasing opportunity cost,

Figure 2-4 -Which production possibilities frontier(s)in Figure 2-4 depict(s)a situation in which all resources are perfect substitutes in production?

Figure 2-6 -A shift in the production possibilities frontier from DC to EC in Figure 2-6 could be due to a

In deciding to produce more agricultural goods and fewer manufactured goods,a society is addressing the question of

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.This is an example of

The principle of specialization and exchange implies that