Exam 2: Scarcity, trade-Offs, and Production Possibilities

An improvement in technology will tend to cause a society's production possibilities curve to shift outward.

FIGURE 2-10 -Refer to Figure 2-10.Which of the following best explains how the society producing breadfruit and fish could have moved from curve AA to curve BB?

What is the circular flow of economic activity a model of?

FIGURE 2-1 -Refer to Figure 2-1.Which of the followings statements about payments for goods and services is the most accurate?

FIGURE 2-2 -Refer to Figure 2-2.Which of the following statements about a movement from Point D to Point C is the most accurate?

How can a decrease in the unemployment rate from 21 percent to 17 percent be illustrated?

What occurs with a movement in a southeast direction along a production possibilities curve?

Alex must prepare for exams in both biology and economics this week.Assume that the production possibilities curve showing the trade-off between exam scores in biology and economics is concave toward the origin.As Alex moves along the curve spending more of his time studying for economics,what is the effect on the opportunity cost of an hour of preparation for economics?

FIGURE 2-9 -Refer to Figure 2-9.If an economy operates at Point A on the production possibilities curve,then which of the following statements is accurate?

If an economy is operating inside its production possibilities curve for tanks and bread,which of the following best illustrates what is happening in the economy?

Explain how each of the following could discourage economic growth: a.The government closes all of the schools so that more people will be available for work. b.The country fears military invasion and spends half of its income on military goods.

Which of the following describes the effect of unemployed resources in the economy?

How is a technological advance that increases the productivity of all inputs best illustrated?

FIGURE 2-7 -Refer to Figure 2-7.What does Point A indicate about the economy?

FIGURE 2-1 -Refer to Figure 2-1.What does the arrow from the factor markets to the households represent?

FIGURE 2-6 -Refer to Figure 2-6.The diagram represents a trade-off in an economy between prison cells and classrooms.Which position represents the choice to allocate the greatest amount of resources to producing classrooms?

FIGURE 2-6 -Refer to Figure 2-6.If the economy moves from Point C to Point A,what is the result?

The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear (a straight line).

If the economy of Taiwan is growing more rapidly than the economy of Japan,which of the following is most likely?

What is the term for a system of economic organization in which the ownership and control of productive capital assets rests with the state,and resources are allocated through central planning and political decision making?