- A decline in technology.People in poor countries may have difficulties achieving economic growth because:-They must cut back on current consumption to increase capital goodsWhich of the following does notillustrate opportunity cost?- All of these illustrate opportunity cost.In Exhibit 2-15, inefficient resource use is shown by which of the following points?-PIn Exhibit 2-16, which of the following points on the production possibilitiescurve are efficient production points?- A, B, C, DA point outside a production possibilities curve reflects:-Efficiency.- Unemployment.Reductions in available resources will cause the production possibilities curve to:- Shift inward.The subject of economics is primarily the study of:-Decision-making because of the problem of scarcity.The law of increasing costs indicates that the opportunity cost of producing agood:- Increases as less of the good is produced.- Is constant to the production of the good.-Is proportional to the production of the good.In Exhibit 2-13, which of the following is not trueregarding point H? Point H:
-Could be achieved today if the economy only achieved full employment.When an inverse relationship is graphed, the resulting line or curve is:-Downward-sloping.The process through which an economy's production possibilities curve shifts outward is:- Investment.An upward-sloping line or curve is used to illustrate:- A direct relationship.Which would be least likelyto cause the production possibilities curve to shift to the right?-Improved methods of production.- An increase in the education and training of the labor force.The production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by-Innovation in the production of goods in EconomagicIn Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy:-Has shown growth between these two years.The law of increasing opportunity costs causes the production possibilities curve to:- Shift inward.- Slope upwards.The amount of a good that must be given up to produce another good is the concept of:-Trade.- Scarcity.Which of the following is trueabout the production possibilities curve when a technological progress occurs? The curve:- Shifts outward to the right.
In the context of the production possibilities curve, opportunity cost is measured in:- The quantity of other goods given up.Production possibilities curve analysis includes the idea of: - All of theseThe production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by:- A war that destroyed some of Economagic's resource base.
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- Spring '12
- Economics, car production