Exam 2: Scarcity and the World of Trade-Offs

Stephanie has decided to eat lunch between classes. She has ranked her choices, from highest to lowest as, (1) turkey sandwich, (2) tuna sandwich, (3) slice of cheese pizza, (4) cheeseburger. The opportunity cost of the eating turkey sandwich is

A point on a production possibilities curve indicates

A tractor used to prepare land for planting is called

To have more consumer goods in the future, we must

Efficiency is defined as

In economics, resources are also known as

Comparative advantage implies choosing the activity that

The production possibilities curve bows out because

Bonnie is a self employed. She makes floral arrangements in a building she rents. She owns the delivery vehicle and has hired a delivery driver. She is an example of

The more society consumes today

The division of labor refers to

Distinguish between scarcity and shortages.

According to the concept of comparative advantage, a good should be produced in that nation in which

Which of the following are considered factors of production? I. Land II) Labor III) Physical capital IV) Entrepreneurship

All of the following are economic resources, or factors of production EXCEPT

All of the following are assumptions of the production possibilities curve EXCEPT

Explain the concept of the law of increasing additional cost.

Opportunity cost is

Opportunity cost is illustrated on the production possibilities curve by a

In the above figure, the opportunity cost of moving from point A to point C is