Exam 2: Scarcity and the World of Trade-Offs

-A farmer has 100 acres of land on which he can grow soybeans or corn. An acre of land yields 200 bushels of soybeans or 100 bushels of corn. The above figure refers to the farmer's

A production possibilities curve with quantities of clothing and food on the axes shows which of the following? I. A society cannot have an unlimited amount of each good. II) For an efficient society, an increase in clothing production will necessitate a decrease in food production. III) A society will always produce the maximum amount of both clothing and food.

Refer to the above figure. Which of the following points indicates an inefficient use of resources?

Activities designed to convert resources into goods and services is known as

In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is

The law of increasing additional costs is due to

Comparative advantage is

A point inside a production possibilities curve indicates

What is production? What economic factors are involved in production?

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

The president of the United States promises that the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?

Which of the following is held constant when constructing a production possibilities curve?

The bowed shape of the traditional production possibilities curve reflects the

If the production possibilities curve is a downward sloping straight line, then

Which of the following would be categorized as "land"?

A friend says, "I really, really need a new car." As an economist, you're thinking

All of the following are examples of physical capital EXCEPT

Scarcity refers to

The concept of absolute advantage relies on

Which of the following statements about economic scarcity is FALSE?