Exam 2: Scarcity and the World of Trade-Offs

Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities Good A B C D E Based on the above information

Opportunity cost can best be defined as

-Refer to the above figure. The Law of Increasing Additional Costs applies in

In economics, physical capital includes

-Refer to the above figure. Production at Point F

The existence of scarcity means that

How can the concepts of opportunity costs, scarcity and choice be illustrated by the production possibilities curve?

It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?

The reason that most of the coffee that is consumed in the United States comes from Colombia is that

Opportunity cost is

The most basic concept of economics is

Which of the following would cause an economy to produce at a point inside its production possibilities curve?

Opportunity cost exists because

In the above figure, the production of 75 ukuleles and 75 guitars is

Why is it that all of our wants cannot be satisfied?

A man-made resource such as a building or a machine is an example of which resource?

Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?

When two countries specialize in the production of different goods and trade with each other, it is most likely each country will

The law of increasing additional cost occurs when

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent