Exam 2: Asome Tools of the Economist

Use the production possibilities data below to answer the following question. Table 2-3 -Refer to Table 2-3.The opportunity cost of 1 pound of meat for the farmer is

Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?

A form of economic organization that relies primarily on private ownership of productive assets,freedom of exchange,and market prices to allocate goods and resources is often called

The owners of private property will

A middleman is a person who

After the terrorist attacks on September 11,2001,the United States began devoting substantial resources toward the War on Terrorism,homeland security,and relief efforts.Use the production possibilities curve to demonstrate how this might affect the production of other goods in the United States.

Sean can build sandboxes twice as fast as Matt.Sean can assemble swing sets three times as fast as Matt.The law of comparative advantage suggests that

Which of the following is true of the production possibilities curve?

Use the production possibilities data below to answer the following question. Table 2-3 -Refer to Table 2-3.The farmer and the rancher both could benefit if the farmer were to specialize in

Which of the following is a private owner prohibited from doing?

The opportunity cost of an alternative

Ken values his boat at $5,000,and Monica values it at $8,000.If Monica buys it from Ken for $7,000,which of the following is true?

If the citizens of a country were to work harder and take less leisure time,it would

Use the production possibilities data below to answer the following question. Table 2-3 -Refer to Table 2-3.The opportunity cost of 1 pound of potatoes for the farmer is

Figure 2-10 -Refer to Figure 2-10.What is the opportunity cost of the movement from point A to point C?

The reason that the production possibilities curve is usually a bow-shaped curve instead of a straight line is that

Land used to grow alfalfa could also be used to grow hay.Which of the following is true when the farmer plants hay and the market price of alfalfa rises?

Don can produce 10 pens or 20 pencils in one hour while Bob can produce 15 pens or 5 pencils in one hour.Which of the following statements is correct?

The student government associations at several universities have experimented with purchasing bicycles to leave around campus for everyone's use.Anyone who needs the bike can use it,and they are not allowed to lock the bike up or take it home,but rather must leave it on campus for someone else to use.Economic theory would predict that

Two individuals engage in the same two productive activities.In which of the following circumstances would neither individual have a comparative advantage in either activity?