Exam 2: Scarcity and the World of Trade-Offs

Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of

The tasks performed by the chef at your favorite restaurant could be categorized as

Which of the following is NOT an example of investment in human capital?

All of the following are resources EXCEPT

Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?

-Refer to the above figure. A farmer has 50 acres of land on which to grow wheat or beans. An acre of land yields 400 bushels of beans or 800 bushels of wheat. Which of the following is a possible combination of beans and wheat that can be grown, assuming the land is farmed efficiently?

Suppose that at a bicycle shop, instead of having each worker assemble an entire bicycle themselves, one person welds the frames, another person works on the braking system, another person works on the tires, and another person works on the gears. This best demonstrates the concept of

Opportunity costs arise from

If opportunity costs are constant, then

Which of the following is NOT an economic good?

In the above figure, how many bushels of corn are produced at point "a"?

Physical capital is distinguished from human capital because

A typical economic good has which one of the following characteristics?

The problem of economic scarcity applies

Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does NOT change the oil himself?

The difference between scarcity and a shortage is that

Comparative advantage implies that you

How is economic growth shown by the production possibilities curve?

Which of the following is NOT an assumption used in deriving a production possibilities curve?

Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?