Self-Quiz Unit 1 - Chapter 2
A person who seeks to earn profits by finding ways to organize factors of production is called a/an:
entrepreneur
In market capitalism:
factors of production are privately owned and decisions are made privately
If the production possibilities curve were a straight line sloping down from left to right, this would suggest that:
no factor of production has any particular comparative advantage over other resources
Government's role of taxing some citizens and transferring income to others is considered:
redistributing income
In this exhibit (Guns and Butter), the combination of guns and butter at point H:
cannot be attained given the level of technology and the factors of production available
When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis:
is measured by the amount of the other good that must be given up
Technology is:
knowledge that can be applied to the production of goods and services
Increasing the level of education in the United States will:
lead to workers possessing greater human capital
Resources from nature that can be used to produce other goods and services are called:
natural resources
Efficient production implies that it is:
not possible to produce more of one good without producing less of another good