Exam 2: Production Possibilities,Opportunity Cost,and Economic Growth

Exhibit 2-11 Production possibilities curves -In Exhibit 2-11,which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

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?

Exhibit 2-19 Production possibilities curves -In Exhibit 2-19,the production possibilities curves for a country are shown for the years Year X and Year Y.Suppose this country was located at point A in Year X and point B in Year Y.This economy:

Why are all costs really "opportunity costs"?

An efficient economy:

If society leaves some of its resources unemployed,then it will be operating at a point:

Exhibit 2-13 Production possibilities curve -In Exhibit 2-13,if the economy decides to locate at point E,then:

Exhibit 2-9 Production possibilities curve -If the economy represented in Exhibit 2-9 is operating at Point W:

The opportunity cost of an economic decision is:

In order for an economy to shift its production possibilities curve rightward,it must:

In economics,the term marginal refers to:

The process through which an economy's production possibilities curve shifts outward is:

Graphically express a production possibilities curve.What do points on,inside and outside the curve represent? What does a rightward shift of the curve represent? How is economic growth expressed in terms of the production possibilities model?

The law of increasing costs indicates that the opportunity cost of producing a good:

In economics,investment refers to the process of accumulating:

Which of the following is true?

Exhibit 2-15 Production possibilities curve -In Exhibit 2-15,inefficient resource use is shown by which of the following points?

The law of increasing costs holds that the opportunity cost:

Exhibit 2-3 Production possibilities curve data -According to the data given in Exhibit 2-3,the production of 1 unit of capital goods and 14 units of consumer goods:

The production possibility curve is bowed outward from the origin because of: