Exam 2: Asome Tools of the Economist

Todd owns a truck that he values at $2,000.Susan,who does a lot of hauling,values the truck at $6,000.If these two are allowed to negotiate,which of the following will most likely occur?

Given your knowledge of the incentives created by private ownership,which of the following would you expect to be false?

Which of the following sayings best reflects the concept of opportunity cost?

The number of cattle slaughtered every year for meat far exceeds the number of elephants slaughtered every year for their ivory.Despite this,cows can be found everywhere while elephants are on the verge of extinction in some countries.Which of the following best explains this difference?

Which of the following is not one of the basic economic questions that all economies must answer?

If Shawn can produce donuts at a lower opportunity cost than Sue,then

Opportunity cost is defined

Which of the following is true regarding value,transaction costs,and exchange?

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 rancher is

The law of comparative advantage suggests that

The opportunity cost of an activity

Internet sites such as eBay make it easier for sellers and buyers to find one another and,by doing so,

If the resources of an economy are being used inefficiently,it would be

Figure 2-9 -Refer to Figure 2-9.The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is

Suppose that country A produces mostly consumption goods and few investment goods,while country B produces mostly investment goods with few consumption goods.Other things constant,which of the following is most likely to happen in the future?

Figure 2-10 -Refer to Figure 2-10.A movement from point C to point D could be caused by

Which of the following most accurately reflects the opportunity cost to a pharmacist who drives a taxi?

If Matt trades two candy bars to Andy in exchange for one baseball card,

Other things constant,which of the following would you expect to increase the output growth rate of a country?

Which of the following is an implication of the law of comparative advantage?