Exam 2: Scarcity and the World of Trade-Offs

Comparative advantage is always a(n) ________ concept.

Two factories make wooden chairs. If the workers in factory A make each chair from start to finish and the workers in factory B divide labor, one would assume

The basic problem in economics is

The making and selling of a pencil for ten cents would likely NOT be possible, but for

-Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?

A straight-line production possibilities curve takes this shape because

Opportunity cost

According to the above table, the opportunity cost of each additional portable device in terms of televisions

Which of the following is TRUE with respect to specialization?

Which of the following will most likely happen when better technology is used in production?

Are all goods economic goods? Are all economic goods also goods? Explain.

Scarcity is

Jose and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario

What happens to overall living standards when countries trade with other countries?

In the above figure, what is the opportunity cost of one bushel of soybeans?

Between points "b" and "c" in the above figure, the opportunity cost of 250 more bushels of corn is

From the economist's point of view

One of the assumptions underlying the production possibilities curve is that

Which of the following statements is NOT an assumption underlying the production possibilities curve?

Distinguish the concepts of comparative advantage and absolute advantage.