Exam 2: A: Some Tools of the Economist

In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?

In order to prosper, entrepreneurs must

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?

Table 2-3 -Refer to Table 2-3. The opportunity cost of 1 pound of meat for the rancher is

Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as

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

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?

The government enforces property rights by

The creation of a new product or process, often facilitated by the knowledge of engineering and scientific relationships, is known as

If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who

If Kim can either wash 10 cars or wax 2 cars during a day, and Vince can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,

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

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

Three basic decisions must be made by all economies. What are they?

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

Which of the following most accurately states the economic significance of exchange?

With voluntary exchange,

The successful introduction and adoption of a new product or process is known as

According to the law of comparative advantage, if a firm or a nation desires to maximize its output, each productive assignment should be carried out by those who

Table 2-2 -Refer to Table 2-2. According to the law of comparative advantage, both Avokia and Baldonia could gain if