HOMEWORK 2 ECON
Which of the following is an example of a capital input?
A computer
A production possibilities frontier shifts outward when
The economy experiences economic growth
Refer to Figure 2-4. This economy cannot produce at which point(s)?
Q, S
Refer to Figure 2-4. Efficient production is represented by which point(s)?
R, U
Refer to Figure 2-4. This economy has the ability to produce at which point(s)?
R, U
Refer to Figure 2-4. Inefficient production is represented by which point(s)?
T
Refer to Figure 2-9, Panel (a). Production at point K is
Possible but inefficient
Factors of production are
used to produce goods and services
Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is
120 blankets
Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?
225 burgers
Refer to Figure 2-7. If this economy devotes all of its resources to the production of engines, then it will produce
40 engines and 0 tvs
Which of the following is a correct statement about production possibilities frontiers?
An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier
In economics, capital refers to
Buildings and machines used in the production process
Any point on a country's production possibilities frontier represents a combination of two goods that an economy
Can produce using all available resources and technology
In the circular-flow diagram,
Income payments flow from firms to households, and sales revenue flows from households to firms
When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good
Increases as more of the good is produced
An economy's production of two goods is efficient if
It is impossible to produce more of one good without producing less of the others
Which of the following is not a factor of production? land money capital labor
Money
Production is efficient if the economy is producing at a point
On the production possibilities frontier
The production possibilities frontier provides an illustration of the principle that
People face trade offs
Refer to Figure 2-6. If this economy moves from point H to point G, then which of the following statements is correct?
This economy has experienced economic growth
In the circular-flow diagram, in the markets for goods and services
households are buyers and firms are sellers
In the circular-flow diagram, in the markets for factors of production
households are sellers and firms are buyers
Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is
zero