Midterm Helper

Midterm Helper - The law of increasing costs is called a...

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The law of increasing costs is called a "law" because it is… Strongly supported by empirical observations. If some resources are specialized in the production of either pizzas or jeans in an economy that produces only pizzas and jeans… The opportunity cost of additional units of pizza will increase as more pizza is produced. A nation must sacrifice the output of some goods to produce other goods during a given period of time, unless… resources are inefficiently employed. The law of increasing costs implies that the cost of eliminating an additional ton of carbon waste from the atmosphere will… involve the sacrifice of a greater amount of other goods and services when 10 million tons are already removed per year than when 8 million tons are already removed per year. Which of the following could cause the production possibilities curve for the U.S. to shift outward? The immigration of millions of skilled workers from eastern Europe. Scarcity means that… an imbalance exists between desires and the means by which those desires are satisfied. The opportunity cost of obtaining more of a scarce good is… the next best alternative sacrificed to obtain it. Which of the following statements is true? When the U.S. economy uses more of its resources to produce environmental protection services in a given year, it must sacrifice the opportunity to produce other goods and services. Which of the following can decrease the opportunity cost of attending college? A decrease in the wages and job opportunities available to high school graduates. Microeconomics is a branch of economics that studies… the behavior of individual decision-making units in the economy Which of the following statements best describes the difference between positive and normative economic analysis? Positive analysis seeks to predict the impact of economic policy on observable items, while normative analysis is concerned with evaluating the desirability of outcomes. Evidence indicates that restrictions on imports… raise prices of both domestic and imported products. Marginal analysis suggests that you will engage in more of an activity if… the additional benefits exceed the additional costs of doing so. Which of the following best defines rational behavior? Improving net gain by pursuing decisions in which the marginal benefits exceed the marginal costs. The marginal benefit of a ticket to the Super Bowl is… The maximum amount he is willing and able to pay to go to the game. Which of the following can cause the production possibilities curve for the U.S. economy to shift outward? An increase in the productivity of U.S. workers. Suppose you spend all your income on ice cream and going to the movies. If the current price of ice cream is $2 per pint and the price of a
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Midterm Helper - The law of increasing costs is called a...

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