Exam 2: Economic Tools and Economics Systems

Suppose you have a choice of going full-time to summer school or going to school full-time and working part-time.Summer tuition and books are $2,200.If you worked part-time,you could make $1,000.Your rent is $1,000 for the summer,regardless of your choice.The opportunity cost of going to summer school full-time and not working is,therefore,

Which of the following is a characteristic of pure capitalism?

It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything.

A university should not disband its football team if it has already paid for the stadium.

On a given production possibilities frontier,which of the following is not assumed to be fixed?

Exhibit 2-4 -In Exhibit 2-4,if all the economy's resources are used efficiently to produce good B,then the economy is at point

Exhibit 2-5 -In Exhibit 2-5,what is the opportunity cost of moving from point c to point b?

The opportunity cost of an activity

Which economic question does the decision to produce butter instead of guns answer?

Which of the following is not a characteristic of pure capitalism?

The division of labor facilitates productivity increases for all of the following reasons,except one.Which is the exception?

Helen gives up the opportunity to bake 40 cakes for each room she paints; Josh can paint one room in the time it takes him to bake 60 cakes.The opportunity cost of a cake for Helen is

On a production possibilities frontier showing possible output levels of good A and good B,the opportunity cost of producing the first 10 units of A will usually be

One of the most centrally planned economies in the world today is found in

Exhibit 2-12 Maria and Hans Production Possibilities for Laundry and Typing -According to Exhibit 2-12,Hans and Maria would be better off if

The production possibilities frontier can be used to show all of the following except one.Which is the exception?

Comparative advantage is

Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home.Which of the following is the most likely explanation for her behavior?

Sunk costs

Adam Smith believed that people's pursuit of their own self-interests