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

A decrease in the unemployment rate will shift an economy's production possibilities curve outward.

It can be said that,ultimately,consumers are the driving force behind answers to the three basic economic questions faced by societies.Explain the consumer's role in providing these answers.

If additional units of output could be produced at constant opportunity cost,what would the shape of the production possibilities curve be?

Which one of the following will NOT cause the production possibilities curve to shift outward?

FIGURE 2-14 -Refer to Figure 2-14.Moving from Point A to Point B,what is the opportunity cost of producing a mountain bike?

FIGURE 2-3 -Refer to Figure 2-3.Which of the following statements about Point A is most accurate?

When more resources in an economy are devoted to the production of capital goods,what happens to the production possibilities curve?

FIGURE 2-5 -Refer to Figure 2.5.How would Point A be described?

Which of the following will NOT shift the production possibilities curve outward?

FIGURE 2-8 -Refer to Figure 2-8.Assume the economy is operating at Point D.What is the opportunity cost of moving to Point B?

What is the main reason economists are concerned about the problem of idle or unemployed resources?

What market is land bought and sold in?

Which of the following distinguishes a "straight-line" production possibilities curve from one that is "bowed out"?

Ming-Na must write a political science term paper and prepare for an economics exam.The production possibilities curve between political science and economics preparation is a straight line.As time spent studying economics increases,what is the effect on the opportunity cost of studying for economics?

Which of the following will shift the production possibilities curve outward?

Which of the following is NOT a resource exchanged in the factor markets?

FIGURE 2-3 -Refer to Figure 2-3.Other things being equal,where would the economy operate in order to achieve the greatest economic growth over time?

High economic growth can eventually eliminate the problem of scarcity.

FIGURE 2-5 -Refer to Figure 2.5.How could Point D be described?

FIGURE 2-13 -Refer to Figure 2-13.Which of the following is a possible explanation for the shift of the production possibilities curve illustrated above?