Exam 2: Scarcity, choice, and Economic Systems

In deciding where to operate along its production possibilities frontier,a society is answering the question of

Figure 2-10 -Consider the production possibilities frontier for food and clothing in Figure 2-10.A movement from point J to point K could be caused by

Productive inefficiency could arise from

Specialization leads to greater production than is otherwise possible

If Chris can produce a service using fewer resources than Pat would,then Chris

One kind of gain from specialization is that

The social problem of resource allocation requires society to decide

Which of the following is an essential feature of any economic system?

-According to the information in Figure 2-11,Jill's opportunity cost of sawing a board is

An economy's production possibilities frontier is fixed in the long run.

The world's total output will be greater the more self-sufficient each of the world's economies becomes.

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.Bill's opportunity cost of mowing the lawn is

Combinations of goods on the production possibilities frontier

Suppose that an economy produces civilian goods and military goods.If technological breakthroughs increase its ability to produce military goods,then

In a traditional economy,decisions about what to produce,how to produce,and who should get society's output are made by

We say there is productive inefficiency in saving lives if

The law of increasing opportunity cost is based on the idea that

Along a society's production possibilities frontier,

If a society is operating on its production possibilities frontier,and then decides to produce less health care,

If Pat can produce a good or service at a lower opportunity cost than Chris can,then