Exam 3: Scarcity, Trade-Offs, and Production Possibilities

Exhibit 3-10 Refer to Exhibit 3-10.If Points A and B indicate consumption goods and capital goods for two different economies,other things held constant,which of the economies is likely to grow more rapidly?

A market economy answers the question "what" goods will be produced by focusing on

Is increased capital spending the only way for an economy to expand its production possibilities curve?

The circular flow of economic activity is a model of the:

Improving the level of education of the labor force will:

A production possibilities curve that is linear (a straight line):

A production possibilities curve will be concave as opposed to straight line if

The position of a country's production possibilities curve in the future will be affected by:

The production possibilities curve is:

In a simple circular flow model,

Exhibit 3-4 Refer to Exhibit 3-4.Moving from Point ____ to Point ____ will result in an increase in the quantity of both capital and consumption goods produced this period.

A move from an abnormally high rate of unemployment toward a more typical level of unemployment would:

Which of the following is the most accurate statement about a production possibilities curve?

Along a production possibilities curve that is concave to the origin,the opportunity cost of production of the good on the horizontal axis ____ as we move down along the curve.

Exhibit 3-4 Refer to Exhibit 3-4.Which point corresponds to an economy experiencing significant unemployment and/or producing inefficiently?

The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear (a straight line).

An increase in an economy's capital stock increases its future productive capacity.

A market economy depends on market mechanisms to:

Excessive unemployment of resources is illustrated using a production possibilities curve by:

Which of the following best distinguishes a "command economy" from a "market economy?"