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

An economy that has many unemployed workers and idle factories is not operating efficiently.

Inefficiency is best illustrated by which of the following?

Exhibit 3-4 Refer to Exhibit 3-4.Other things being equal,the economy will achieve the greatest economic growth over time if it currently operates at:

Exhibit 3-14 Refer to Exhibit 3-14.Which move to the new production possibilities curve will result in more housing and food?

In the simple circular flow model:

A point beyond the boundary of an economy's production possibilities curve is:

Which of the following is not a payment made to households in exchange for the use of factors of production?

Exhibit 3-13 Refer to Exhibit 3-13.A movement from Point D to Point C:

If additional units of output could be produced at constant opportunity cost,the production possibilities curve would be:

The simple circular flow model shows that workers and owners of land and capital offer their services through:

Exhibit 3-12 Refer to Exhibit 3-12.The statement "to get more apples we have to give up wheat" is best illustrated in the diagram by a movement from:

An inefficient use of resources can be illustrated using a production possibilities curve as:

Exhibit 3-14 Refer to Exhibit 3-14.Which move to the new production possibilities curve will lead to more food and the same level of housing?

Approximately two decades after a "baby boom," one could expect:

Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher.This can be portrayed as:

In the graph of the circular flow model below,area C represents

A decrease in the unemployment rate from 21 percent to 17 percent can be illustrated as:

Exhibit 3-9 Refer to Exhibit 3-9.Assume the economy is operating at Point D in the figure.The opportunity cost of moving to Point B is:

Exhibit 3-3 Refer to Exhibit 3-3.A movement from Point B to Point C:

The concept of opportunity cost is illustrated by: