Exam 3: Production Possibilities and Opportunity Cost

Mikki decides to work five hours the night before her economics exam. She earns an extra $75, but her exam score is 10 points lower than it would have been had she stayed home and studied. Her opportunity cost of working more is the:

A farmer is deciding whether or not to add fertiliser to his or her crops. If the farmer adds 1 kilogram of fertiliser per hectare, the value of the resulting crops rises from $80 to $100 per hectare. According to marginal analysis, the farmer should add fertiliser if it costs less than:

When an economy's resources are not fully employed, then it must be true that the:

Robinson Crusoe's decision to produce more capital goods and fewer consumer goods in a given period causes:

Narrbegin Exhibit 2–9 Production possibilities frontier -In Exhibit 2.9, which of the following is not true regarding point H? Point H:

Which of the following would most likely cause the production possibilities curve for DVD players and food to shift outward?

An opportunity cost is the total cost of all other alternatives foregone whenever one chooses an alternative.

The production possibility curve illustrates the important economic concept of opportunity cost.

Why must every nation answer the three fundamental economic questions?

The production possibility curve is bowed outward from the origin because of:

When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is always taken into consideration.

If Bruce pays $2000 in tuition fees to the college, what is his opportunity cost?

The production possibilities frontier shows different combinations of two goods:

Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:

Narrbegin Exhibit 2–9 Production possibilities frontier -In Exhibit 2.9, if the economy decides to locate at point E, then:

The argument for an increase in skilled and business migration is based on which of the following?

The opportunity cost of watching television is:

Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held as fixed?

The rate of future economic growth will be greater if:

A point outside a production possibilities curve reflects: