Exam 2: A: Some Tools of the Economist

In Zimbabwe and Botswana, elephants can be owned by local tribes and trade in ivory is legal, while in countries such as Kenya, it is illegal to trade in ivory and elephants cannot be privately owned but are protected by the government. Which of the following is true regarding the change in the elephant populations since 1979 in these countries?

Table 2-1 -Refer to Table 2-1. Which of the following is true?

Which of the following activities describes the opportunity cost of watching a play in a theater?

In a market economy, what is produced is ultimately determined by

When private ownership of a resource is clearly defined and enforced, the private owner

A point inside the production possibilities curve represents a combination of goods that is

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

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?

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

In voluntary exchange, if the seller of a product gains,

Which of the following appropriately applies the law of comparative advantage?

"If I didn't have a date tonight, I would save $10 and spend the evening playing tennis." The opportunity cost of the date is

Suppose an economy produces only two goods, computers and TVs. If the economy operates at a point on its production possibilities curve, it can produce more computers only if

The opportunity cost of an action is

In Africa, which of the following policies has been most successful at increasing elephant populations?

When collective decision making is utilized to resolve economic questions regarding the allocation of resources,

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

According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by

When an economy is operating efficiently, the production of more of one good will result in the production of less of some other good because

The wages of house painters will tend to rise when