Macroeconomics Chapter 2
Adam Smith
" An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by?
True
(T-orF) Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product.
The lack of well-defined and enforceable property rights
A major factor contributing to the slow growth rate of less developed economies is...
increasing opportunity costs as more and more of one good is produced.
A production possibilities frontier with a bowed outward shape indicates...
well-defined property rights and an independent court system to adjudicate disputes based on law.
A successful market economy requires...
The process by which individuals acting in their own self interest bring about a market outcome that benefits society as a whole.
Adam Smith's invisible hand refers to...
Patents and copyrights
The primary purpose of ____ is to encourage the expenditure of funds on research and development to create new products
At a lower opportunity cost than any other producer
Comparative advantage means the ability to produce a good or service...
Help to create a more sucesful market system
Stricter laws and regulations to protect intellectual property rights will...
If all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another group
The Production Possibilities Frontier model shows that...
Factor Market
The natural resources used in production are made available in the____ market
equal to the highest value of an alternative use of the time and money spent on the class.
The opportunity cost of taking a semester-long economics class is....
The economic cost of using a factor of production is the alternative use of that factor that is given up
The principle of opportunity cost is that...
Measures the opportunity cost of producing one more unit of a good
The slope of a production possibilities frontier....
The points along and inside the production possibility frontier
the attainable production points on a production possibility curve are...
The ability to exercise control over ones own resources within the confines of the law.
the term "property rights" refers to...
Product Market
when you purchase a new pair of jeans you do so in the ____ market