Exam 2: Scarcity and the World of Trade-Offs

Scarcity is caused by

If an economy produces only steel and wheat, a new fertilizer will

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

A man-made resource such as a building or a machine is an example of which resource?

Which of the following is NOT an economic good?

Which of the following items would be considered scarce?

Efficiency is defined as

Activities designed to convert resources into goods and services is known as

Distinguish the concepts of comparative advantage and absolute advantage.

The curve that represents all possible combinations of goods that can be produced is called

The most basic concept in economics is

Two factories make wooden chairs. If the workers in factory A make each chair from start to finish and the workers in factory B divide labor, one would assume

-In the above figure, what is the opportunity cost of one bushel of corn?

Which of the following is true with respect to specialization?

In constructing a production possibilities curve, all of the following are assumed EXCEPT

A point outside a production possibilities curve indicates

Education and training of workers would best be categorized as

If a country wants to promote future growth, it should

Suppose you have four choices-go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is

The production possibilities curve for two products is bowed out because