Exam 2: Production Possibilities and Economic Systems

Figure 2-3 Tonnes of Soybeans -Given the PPC in Figure 2-3,if farmers are producing 7,000 tonnes of soybeans at point b,they

Using a PPC graph,explain what we can tell about whether a particular point on the production possibilities curve is preferable to a specific point inside it.

If a person can earn $70,000 as an accountant,$60,000 as a chef,$20,000 as a mechanic,and nothing as an opera singer,he or she has a comparative advantage in

Increasing opportunity cost implies that

Figure 2-1 -In Figure 2-1,this society's best use of scarce resources

Which of the following is NOT an assumption used in deriving a production possibility curve?

Capital goods

Specialization according to the comparative advantage principle within a country

When applied to an economic system,the term laissez-faire means that

A straight-line PPC would indicate that there is

The benefits from specialization and trade are the result of

The opportunity cost of producing more capital goods today is

Consider the following production possibilities table for drill presses and corn.The table shows the maximum combination of drills and corn that can be produced when all resources are fully employed. Drill Presses 10 20 30 40 50 Corn 150 140 120 90 50 Based on the information in the table,

A production possibilities curve bowed outward is consistent with

Figure 2-4 -Between c and b in Figure 2-4,the opportunity cost of another tonne of corn is (on average)

Figure 2-2 -In Table 2-1,if the economy moves from point F to point E,________ televisions are gained at a cost of ________ given up.

The more goods and services a society consumes today,