economics

In a mixed economy, what to produce and how much to produce are determined by

markets and the government

All of the following are included in computing the opportunity cost of attending college EXCEPT

money spent on clothing expenses

An outward shift in the production possibilities curve of an economy can be caused by an increase in

the labor force

After graduating from high school, Peggy Smith decided to enroll in a two-year program at the local community college rather than to accept a job that offered a salary of $12,000 per year. If the annual tuition and fees are $4,600, the annual opportunity cost of attending the community college is

$16,600

A student who attends college would pay $10,000 annually for tuition, books, and fees. If the student's next best alternative is to work and earn $15,000 a year, the opportunity cost of a year in college would be equal to

$25,000, representing the sum of tuition, books, fees, and forgone income

If two coats are currently being produced, the opportunity cost of producing the third coat is

15 belts

According to the graph above, if a country is currently producing at point X, the opportunity cost of producing another consumer good is

20 capital goods

The table below represents points on an economy's current production possibilities curve. The opportunity cost of increasing the production of good Y from 0 to 200 is.

20 units of X

Economic growth can be depicted using a production possibilities curve by which of the following?

A rightward shift of the curve

An economy that is fully employing all its productive resources but allocating less to investment than to consumption will be at which of the following positions on the production possibilities curve shown below?

C

Which of the following would cause the production possibilities curve shown above to shift outward?

Developing a more efficient steelmaking process

The graph above shows an economy's production possibilities frontier for the production of two goods, X and Y. Assume that the economy is currently at point B. The opportunity cost of moving from point B to point C is

HG units of good Y

For an economy with a straight-line production possibilities curve, which of the following must be true? I. The opportunity cost of producing another unit is constant. II. Resources are completely adaptable to alternative uses. III. Resources are used efficiently.

I and II

Problems faced by all economic systems include which of the following? I. How to allocate scarce resources among unlimited wants II How to decentralize markets III How to decide what to produce, how to produce, and for whom to produce IV How to set government production quotas

I and III only

On the basis of the diagram above showing an economy's production possibilities curve for two goods, which of the following statements must be true? I. The opportunity cost of moving from point P to point R is 10 units of Y II. The opportunity cost of moving from point R to point P is 8 units of X III. The opportunity cost of moving from point Q to point R is 0 units of Y

I, II and III

An opportunity cost is entailed in which of the following situations? I. A student decides to attend college full-time. II. A family uses its $20,000 savings to purchase an automobile. III. A family decides to grow more wheat and less corn.

I, II, and III

Which of the following best defines opportunity cost?

It is the amount of one product that must be given up in order to produce an additional unit of another product.

Which of the following must be true of a country that is operating inside its production possibilities frontier?

It is using resources inefficiently.

The diagram above shows the production possibilities curve for an economy that produces only consumption and capital goods. All of the following statements about this economy are true EXCEPT:

Point X represents the most efficient combination of the two goods that can be produced by this economy

The fundamental difference between a market economy and a command economy lies in which of the following?

Property rights and protection of private property

The study of economics is primarily concerned with which of the following?

The allocation of scarce resources, given unlimited wants

If it were possible to increase the output of military goods and simultaneously to increase the output of the private sector of an economy, which of the following statements about the economy and its current position relative to its production possibilities curve would be true?

The economy is inefficient and inside the curve.

Which of the following is true of an economy with the production possibilities frontier shown above?

The opportunity cost of moving from point S to point T is the number of watches given up.

Which of the following best describes human capital?

The training and education of workers

Assume that land in an agricultural economy can be used either for producing grain or for grazing cattle to produce beef. The opportunity cost of converting an acre from cattle grazing to grain production is the

amount by which beef production decreases

The best combination of belts and coats for this economy to produce is

indeterminate with the available information

Unlike a market economy, a command economy uses

more centralized planning in economic decision making

The diagram below shows an economy's current production possibilities curve for capital goods and consumer goods. If society chooses point B over point A, society is choosing

more future consumption in exchange for less current consumption

Opportunity cost is defined as

the value of the next best alternative that is forgone when an activity is pursued