Exam 2: Scarcity and the World of Trade-Offs

The division of labor refers to

The ability to produce a good at a lower opportunity cost than others is known as

The making and selling of a pencil for ten cents would likely NOT be possible, but for

Opportunity cost is defined as

On an afternoon that a class meets, you could alternatively study for an exam that will take place in another class the next morning, go to a movie with a friend, or, most desirable to you at present, take a nap. The opportunity cost of attending the afternoon class is

-In the above figure, the combination of personal computers and televisions shown by point w

If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then

In order for an economy to increase its production possibilities, the economy must

John has decided to view the solar eclipse tomorrow. The eclipse is an example of

When determining the production possibilities curve

-In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is

The basic problem in economics is

The production possibilities curve shows all possible combinations of

The text argues that if avocado growers in Mexico can produce avocadoes cheaper than avocado growers in the United States, this will not reduce total jobs available in the United States. The logic underlying this argument is that

The trade-off between the present and future consumption is measured by

In economic terminology, when a resource is used to produce output it is referred to as

Which of the following is NOT considered to be an economic resource?

You have the option of consuming one cup of coffee or two donuts or three oranges. You picked the cup of coffee. Therefore the opportunity cost of this cup of coffee is

The more society consumes today

The law of increasing opportunity cost implies that