Exam 2: Production Possibilities and Economic Systems

Use Adam Smith's pin factory example to explain how the division of labour within a firm can increase output from a given quantity of resources.

In the language of economics,"technology" is defined as ________.

A straight-line production possibilities curve would indicate that

Figure 2-2 -In Figure 2-2,the PPC has the bowed shape because

The division of labour refers to

People who argue in favour of laissez-faire

With resource specialization,

If a country's production possibilities curve gets more bowed out over time,we know that

Freely adjusting prices,profits,and private property are most closely associated with

Figure 2-1 -In Figure 2-1,could point A ever be preferred to point C?

A point outside a society's PPC is

Figure 2-3 Tonnes of Soybeans -The production possibilities curve shown in Figure 2-3 shows that the opportunity cost of each tonne of soybeans is

Figure 2-2 -Given the production possibilities schedule in Table 2-1,a combination of 23 televisions and 6 computers

In a pure capitalist economy the least-cost combination of inputs is used to produce a good because

If opportunity costs remained constant,then

Figure 2-2 -In Figure 2-2,the combination of personal computers and televisions shown by point X

Division of labour raises the output of society by

Figure 2-2 -In Table 2-1,if the economy moves from point D to point E,the opportunity cost of the extra personal computer in terms of televisions given up is ________.

If individual X has a comparative advantage in painting fences and individual Y has a comparative advantage in carpentry,we know that

The prime minister of Canada promises to produce more defence goods without causing any decreases in the production of other goods.Such a promise could be valid