Micro Econ Chapter 2

Scarcity

stems from the incompatibility between limited resources and unlimited wants.

Which of the following is a factor of production?

an oven in a bakery

Comparative advantage means the ability to produce a good or service

at a lower opportunity cost than any other producer.

The opportunity cost of going to an outdoor music festival is

equal to the highest value of an alternative use of time and money spent on the festival.

The production possibility frontier model shows that

if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has _____ than the opportunity cost to men.

increased more

If society decides it wants more of one good and all resources are fully utilized, then

it has to give up some of another good and incur some opportunity cost.

The resource income earned by those who supply _____ is called wages.

labor

The term "property rights" refers to

the ability to exercise control over one's own resources within the confines of the law.

The attainable production points on a production possibility curve are

the points along and inside the production possibility frontier.

The points outside the production possibility frontier are

unattainable.