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

Exhibit 3-3 Refer to Exhibit 3-3.An economy is operating at full employment,and then workers in the bread industry are laid off.This change is portrayed in the movement from:

The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of:

A market system:

Which of the following will shift a production possibilities curve outward?

Exhibit 3-13 Refer to Exhibit 3-13.The opportunity cost of producing an additional cupcake equals:

Which of the following distinguishes a "straight-line" production possibilities curve from one that is "bowed out"?

The main reason economists are concerned about the problem of idle or unemployed resources is that:

An improvement in technology will tend to cause a society's production possibilities curve to shift outward.

Ming-Na must write a political science term paper and prepare for an economics exam.The production possibilities curve between political science and economics preparation is a straight line.As time spent studying economics increases,the opportunity cost of studying for economics:

The law of increasing opportunity costs implies that:

A straight line production possibilities curve implies increasing opportunity costs.

Exhibit 3-5 Refer to Exhibit 3-5.If an economy operates at Point A on the production possibilities curve shown above,then:

Which of the following is a reason for the law of increasing opportunity cost?

Since resources are not equally substitutable across uses:

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

Exhibit 3-3 Refer to Exhibit 3-3.Currently,it is not possible to produce at:

Which one of the following will not cause the production possibilities curve to shift outward?

When resources are used efficiently,you can produce more of one good,ceteris paribus,only by:

Exhibit 3-3 Refer to Exhibit 3-3.A movement from Point G to Point F:

Does economic growth eliminate scarcity?