Exam 2: Asome Tools of the Economist

Sally wishes to spend more time this week studying for her classes.Using the idea of a production possibilities curve,and assuming Sally is currently spending all of her time efficiently,Sally can spend more time studying this week only if

"Now that Blake paints the broad surfaces and I do the trim work,we can paint a house in three-fourths the time that it took for each of us to do both." This statement most clearly reflects

A profit-seeking decision maker who decides which business projects to undertake and how they should be undertaken is called

When an entrepreneur like Bill Gates makes $10 billion through creating and selling new products,

Because private owners are held responsible for damages their property causes to the property of others,private owners have

Entrepreneurs are

Your opportunity cost of attending a football game is

Kelly is an attorney and also an excellent typist.She can type 120 words per minute,but she charges attorney fees at $100 per hour.Todd would like some typing work but can only type 60 words per minute.According to the law of comparative advantage,Kelly should hire Todd to do her typing if and only if his wage rate is less than

High transaction costs will tend to

In the fictitious country of Lebos,the government allows private ownership of pigs but not of cows.If the people of Lebos permanently increase their desire to purchase more pork and beef,in the long run,we would expect

Which of the following activities describes the opportunity cost of attending an economics class?

With time,which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?

In order to prosper,entrepreneurs must

Market economies are often criticized for how they answer the basic question,"For whom are goods produced?" This criticism usually comes from people who believe that the distribution of income is not "fair." Is there some way to separate production from distribution so that we can leave production just as it is but make the distribution of income "fairer"?

Use the production possibilities data below for Avokia and Baldonia to answer the following question(s). Table 2-2 -Refer to Table 2-2.Which of the following is correct?

Increasing opportunity costs of producing goods imply that the production possibilities curve will be

The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is

According to the law of comparative advantage,

Figure 2-10 -Refer to Figure 2-10.If this economy put all available resources into the production of bananas,it could produce

An economics professor points to a student in the front row and announces that "sitting in class is the thing you value most during this time period." Is the professor correct? Why or why not?