Exam 2: Scarcity and the World of Trade-Offs

-The above figure is referred to as a(n)

The law of increasing opportunity cost implies that

Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of

Using productive resources to make capital goods requires that we

Scarcity implies that

Human beings

How is economic growth shown by the production possibilities curve?

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

The law of increasing additional cost is due to

A student has a job that pays a wage rate of $10 per hour. The night before an economics exam, the student has set aside four hours to study for the exam, estimating that for each hour spent studying, her grade will rise by 5 points. That night, she gets a call from her employer to come to work for a wage rate of $15 per hour for that night. She decides to work for three hours and earn an extra $45.00. The next day she takes the test and gets a grade of 75. The opportunity cost for her work is

Scarcity implies that

-Refer to the above figure. Which of the following statements is true?

Why specialize?

The production possibilities curve represents the maximum feasible production combinations resulting from

A bowed production possibilities curve is consistent with

Scarcity and shortages differ in that

The law of increasing additional cost exists because

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

-If the farmer is producing 5000 bushels of soybeans at point "b" in the above figure, we know that

In the production of goods and services, trade-offs exist because