2.1
what is the opportunity cost of moving from point B to point C
20 sedans
at which point is the country's future growth rate likely to be the highest?
Point W
which points are efficient
WXY because this is where maximum output is produced with available resources
which therapy would you recommend
either A or B
telsa motors, like any other firm, faces many strategic decisions and trade-offs. if tells motors expends resources to expand its supercharger network, then an opportunity cost would be
fewer resources that could be devoted to car production
the production possibilities frontier will shift outward
if technological advances occur
which of the following events would create economic growth, that is, shift the production possibilities frontier outward?
increase natural resources, labor, technology ...ATA
what does increasing marginal opportunity costs mean
increasing the production of a good requires larger and larger decreases in the production of another good
which of the following is not scarce according to the economic definition
none of the above
it is important for tells motors to address the issue of long-distance travel because
people are less likely to buy a car that does not allow them the freedom to take longer trips
which points are inefficient
point V because production there is not using all available resources
which points are unattainable
point Z because it is outside the production possibilities frontier
a production possibilities frontier
shows the maximum attainable combinations of two goods that may be produced with available resources
what happens if a country produces a combination of goods that efficiently uses all of the resources available to the economy
the country is operating on its production possibilities frontier
what are the implications of this idea for the shape of the production possibilities frontier
the production possibilities frontier will be bowed outward
what factors should the federal government take into account in making its decision of which therapy it will allow medicare funds to be used to pay for
the relative cost of each therapy
do you agree with baum that the economic system in Oz wouldn't work in the contemporary United States
the system in Oz wouldn't work. The wants of people in the US exceed the resources available to fulfill those wants
how should policymakers determine the amount of money that should be allocated for research curing heart disease? They should base their decision on
whether the last dollar devoted to research on the heart disease results in more benefit that the last dollar spent on research for curing other diseases
what do economists mean by scarcity
economists mean that unlimited wants exceed limited resources
the principle of increasing marginal opportunity cost states that the more resources devoted to any activity, the _____ the payoff to devoting additional resources to that activity.
smaller
it would be more moral to reduce pollution
taking the cost into account because money spent on pollution is not available for the other worthy activities
what is the opportunity cost of spending more money to find a cure for heart disease
the reduction in funding for research to cure other diseases
we can show economic inefficiency
with points inside the production possibilities frontier
we can show economic efficiency
with points on the production possibilities frontier
suppose you win free tickets to a movie plus all you can eat at the snack bar for free. would there be a cost to you to attend this movie
yes, because the movies opportunity cost is equal to the highest-valued alternative that must be given up to attend the movie
it is likely that the production possibilities frontier in this situation would be a straight line or bowed out
the production possibilities frontier would likely be bowed out because not all resources are equally well suited to produce bother consumption and capital goods