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