Question 1

Two reasons why an economy might operate inside of its production possibilities frontier are

Accepted Answer

A) productive efficiency and technological change 
B) depressions and inflation 
C) recessions and productive inefficiency 
D) opportunity costs and substitutability of resources used in production 
E) productive inefficiency and a decrease in the state of technology 
A) productive efficiency and technological change 
B) depressions and inflation 
C) recessions and productive inefficiency 
D) opportunity costs and substitutability of resources used in production 
E) productive inefficiency and a decrease in the state of technology

Question 2

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

Accepted Answer

A) allocate all $5 million to Procedure 1 
B) allocate all $5 million to Procedure 2 
C) allocate $1 million to Procedure 1 and $4 million to Procedure 2 
D) allocate $2 million to Procedure 1 and $3 million to Procedure 2 
E) allocate $3 million to Procedure 1 and $2 million to Procedure 2 
A) allocate all $5 million to Procedure 1 
B) allocate all $5 million to Procedure 2 
C) allocate $1 million to Procedure 1 and $4 million to Procedure 2 
D) allocate $2 million to Procedure 1 and $3 million to Procedure 2 
E) allocate $3 million to Procedure 1 and $2 million to Procedure 2

Question 3

If the Ford Motor Company decides to use more robots in its manufacturing plants,the company is addressing the question of

Accepted Answer

A) which goods and services should be produced with society's scarce resources 
B) what production methods should be used to produce goods and services 
C) how will output be allocated among the individuals in the society 
D) what prices will be charged for goods and services 
E) the optimal degree of central planning 
A) which goods and services should be produced with society's scarce resources 
B) what production methods should be used to produce goods and services 
C) how will output be allocated among the individuals in the society 
D) what prices will be charged for goods and services 
E) the optimal degree of central planning

Question 4

The role of prices in a market economy is to

Accepted Answer

A) make producers rich at the expense of consumers 
B) replicate what society produced in the past 
C) determine the allocation of resources 
D) enforce what the government chooses 
E) force consumers to pay for business profits 
A) make producers rich at the expense of consumers 
B) replicate what society produced in the past 
C) determine the allocation of resources 
D) enforce what the government chooses 
E) force consumers to pay for business profits

Question 5

-Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships.If the country is currently operating at point C and decided to move to point B,

Accepted Answer

A) the opportunity cost would be four rockets 
B) it could not do so,given the current state of technology and quantity of resources 
C) the country would have to forego producing six cruise ships 
D) the opportunity cost would be four cruise ships 
E) the opportunity cost would be six rockets 
A) the opportunity cost would be four rockets 
B) it could not do so,given the current state of technology and quantity of resources 
C) the country would have to forego producing six cruise ships 
D) the opportunity cost would be four cruise ships 
E) the opportunity cost would be six rockets

Question 6

The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency.

Accepted Answer

A) True 
 B)False

Two reasons why an economy might operate inside of its production possibilities frontier are

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

If the Ford Motor Company decides to use more robots in its manufacturing plants,the company is addressing the question of

The role of prices in a market economy is to

-Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships.If the country is currently operating at point C and decided to move to point B,

The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency.

What Is Economics

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 2: Scarcity, choice, and Economic Systems

Two reasons why an economy might operate inside of its production possibilities frontier are

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

If the Ford Motor Company decides to use more robots in its manufacturing plants,the company is addressing the question of

The role of prices in a market economy is to

-Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships.If the country is currently operating at point C and decided to move to point B,

The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency.

What Is Economics

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters