Homework #2 Micro-Economics
Figure 2-6. The opportunity cost of this economy moving from point I to point H is...
120 blankets
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
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 other
Figure 2-6. The opportunity cost of this economy moving from point K to point H is...
zero
What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?
225 burgers
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 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
Figure 2-4. This economy cannot produce at which point(s)?
Q, S
Figure 2-4. This economy has the ability to produce at which point(s)?
R, T, U
Figure 2-4. Efficient production is presented by which point(s)?
R, U
Figure 2-4. Inefficient production is represented by which point(s)?
T
Figure 2-6. If the economy moves from point H to point G, then which of the following statements is correct?
This economy has experienced economic growth
Which of the following is an example of a capital input?
a computer
In economics, capital refers to
buildings and machines used in the production process
In the circular-flow diagram,...
income payments flow from firms to households, and sales revenue flows from households to firms
In the circular-flow diagram, in the markets for...
goods and services, households are buyers and firms are sellers
Which of the following is not a factor of production?
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
Figure 2-9 Panel (a). Production at point K is...
possible by inefficient
A production possibilities frontier shifts outward when...
the economy experiences economic growth
In the circular-flow diagram in the markets for...
the factors of production, households are sellers and firms are buyers
Factors of production are
used to produce goods and services