Exam 2: Scarcity and the World of Trade-Offs

When an economy sacrifices production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will

Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is

Which of the following is NOT an economic resource?

The fact that our wants are unlimited but our resources are limited implies that

Specialization and the division of labor typically result in

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

Scarcity is

Services can be thought of as

In order for a production possibilities curve to shift to the right, which of the following must occur?

-In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is

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

Explain the concept of the law of increasing additional cost.