Exam 2: Scarcity and the World of Trade-Offs

-In the above figure, the combination of computers and televisions shown by point x

To an economist, the term "needs"

The production possibilities curve represents the maximum feasible production combinations resulting from

Which factor of production includes crude oil deposits?

Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 million a year. His opportunity cost at graduation was ________ and eight years later was ________.

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, the opportunity cost of making one waffle for Maria is

In economic terminology, the accumulated training and education that workers receive to increase their productivity is referred to as

In economics, international trade is based on the existence of

If you can make $25,000 a year teaching, $20,000 a year writing computer programs, $30,000 a year driving a cab, and $40,000 a year as an actor or actress. You have a comparative advantage in

Explain how comparative advantage, specialization and division of labor are related.

When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?

As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?

A straight-line production possibilities curve has

Generally, specialization leads to

If a country increased the production of its capital goods, then

Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is

Naturally occurring diamonds are an example of

Scarcity implies that people must

Labor, human capital, and entrepreneurship are resources related to human beings. Distinguish among the three resources.

At a zero price, which of the following conditions is TRUE for an economic good?