Test one– Chapter two – Flashcards

The existence of scarcity requires

Which of the following is not generally considered to be a resource​ (factor of​ production)?

Each individual must make choices because

Why do economists avoid making the distinction between wants and needs​?

Opportunity cost is best defined as______alternative(s) that must be sacrificed to obtain something or to satisfy a want. Which of the following would least likely​ be, for the typical​ student, the opportunity cost of attending a class at​ 11:00 a.m.? The opportunity cost of attending a class at​ 11:00 a.m. will likely differ from the opportunity cost of attending a class at​ 8:00 a.m. because?

​Recently, a woman named Mary Krawiec attended an auction in​ Troy, New York. At the​ auction, a bank was seeking to sell a foreclosed​ property: a large Victorian house suffering from years of neglect in a neighborhood in which many properties had been on the market for years yet remained unsold. Her​ $10 offer was the highest bid in the​ auction, and she handed over a​ $10 bill for a title to ownership. Once she acquired the​ house, however, she became responsible for all taxes on the property amounting to ​$4 comma 5004,500 and for an overdue water bill of ​$2 comma 0002,000. In​ addition, to make the house​ habitable, she and her husband devoted months of time and unpaid labor to renovating the property. In the​ process, they incurred explicit expenses totaling ​$67 comma 14467,144. Calculate Mary​ Krawiec's explicit cost. ​$ Mary​ Krawiec's total cost is___her explicit cost. If the bank were to own the​ property, its total costs were likely to be____ Mary​ Krawiec's explicit cost. The bank was willing to sell the house at auction to Ms. Krawiec for only​ $10 because if the bank paid to renovate the​ property, paid the back​ taxes, and paid the overdue water​ bill,

The graph shows a production possibilities curve for a student who currently spends 8 hours a week studying. How could the student get a B in both​ classes?

During a debate on the floor of the U.S.​ Senate, Senator Creighton​ states, ​"Our nation should not devote so many of its fully employed resources to producing capital goods because we already are not producing enough consumption goods for our​ citizens." In response to Senator​ Creighton's statement, Senator Long​ replies, ​"We must remain at our current production combination if we want to be able to produce more consumption goods in the​ future." Of the labeled points on the diagram to the​ right, the one which could depict the future production combination Senator Long has in mind is d

Economic growth can be pictured in the accompanying diagram by

You are investing your resources in a college education because

What is the difference between absolute advantage and comparative​ advantage?

The division of labor increases the output of society by

Which of the following statements is​ true?

GermanyGermany and SingaporeSingapore are countries that trade with each other. If GermanyGermany has a comparative advantage in carscars and SingaporeSingapore has a comparative advantage in shoesshoes​, which of the following is a correct statement about the effects of trade between these​ nations?

Which of the following is not generally considered to be a resource​ (factor of​ production)?

When an individual proclaims the need for a new​ car, the person typically means

Juanita has just opened a new business selling pet supplies through the Internet.

A friend​ says, "I​ really, really need a new​ car." As an​ economist, you're thinking

The following table lists the costs incurred by a student attending a public university for one semester. ​(Note: By attending​ college, the student will have to work fewer hours but will stay in his current​ apartment.) Tuition and Fees $5000 Room and Board ​$950 Books and supplies ​$ 500 Lost wages ​$6,000 What is the total opportunity cost that the student incurs by attending college for one​ semester?

Which of the following sets of terms describes the problem of scarcity in​ economics?

The production possibilities curve shows all possible combinations of

How does an economy represented by a​ straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed​ shape?

Technology

The production possibilities curve will shift outward​ (upward, and​ or, to the​ right) when

Current production of capital goods means that

In order for a production possibilities curve to shift to the​ right, which of the following must​ occur?

When an economy sacrifices production of consumption goods to produce more capital​ goods, we would expect that the production possibilities curve will

SteveSteve can​ wash, fold, and iron a basket of laundry in two hours and prepare a meal in one hour. His roommate Mike can​ wash, fold, and iron a basket of laundry in three hours and prepare a meal in one hour. The absolute advantage in laundry is held by The comparative advantage in meal preparation is held by

GermanyGermany and MalaysiaMalaysia are countries that trade with each other. If GermanyGermany has a comparative advantage in carscars and MalaysiaMalaysia has a comparative advantage in shoesshoes​, which of the following is a correct statement about the effects of trade between these​ nations?

The making and selling of a pencil for ten cents would likely NOT be​ possible, but for

When nations specialize in their areas of comparative advantage and then trade with the rest of the​ world, the result is that

Economic goods are

Economists are concerned with an​ individual's

Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her​ choices, from highest to lowest​ as, (1) chat with her​ friends, (2) study economics or​ (3) take a nap. The opportunity cost of chatting with her friends is

John and Mary work eight hours at a bakery. John can decorate either 10 iceminus−cream cakes or 4 wedding​ cakes; Mary can decorate either 8 iceminus−cream cakes or 2 wedding cakes. According to this​ scenario,

Many state governments claim a shortage of funds because there are​ "unmet needs." This claim is

Mariko is buying a soft drink. She can choose between iced tea​, cola​, and diet cola. She​ doesn't like diet cola​, and after some​ thought, she chooses iced tea. What is the opportunity cost of this​ choice?

A production possibilities curve represents

A​ straight-line production possibilities curve takes this shape because

The production possibilities curve​ (PPC) illustrates economic growth by​ a(n)

Current production of capital goods means that

Whenever a society forgoes current consumption to invest in capital​ goods

TanyaTanya can make 33 loaves of breadloaves of bread or 1 apple pieapple pie in one hour. JonathanJonathan can make 22 loaves of breadloaves of bread or 1 apple pieapple pie in one hour. Based on this​ information, which of the following is a true​ statement?

Specialization of labor and trade yield greater economic efficiency when applied to interstate​ trade,

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