Strawberries are becoming more popular. There are not enough resources to make everything we want. B. advancements in technology that make labor more productive, (Consider This) Free products offered by firms. This suggests that. To earn the most pay, what is the trade-off? This economy. B. Figuring out what you will give up and what you will gain by hiring a new worker. Giving up one benefit in order to gain a greater benefit is a(n) ______. D. the opportunity cost of shelter is greater in Alpha than it is in Beta. We can conclude that. D. The good was produced to the point when its marginal benefit exceeded its marginal cost. Opportunity costs are. A. the principle of increasing opportunity costs is relevant. Refer to the budget line. C) a constant opportunity cost between the two goods. What explains the bow shape of PPC? D. North Cantina has better technology than South Cantina in producing consumer goods but not capital goods. When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because, Assume that a change in government policy results in greater production of both consumer goods and investment goods. Refer to the diagram. Uses its resources to make the most goods and services. Underutilization is the use of fewer resources than an economy is capable of using. Modern economists have rejected the labor and sacrifices nexus to represent real cost. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be, Refer to the tables. The prices of both products and money income are assumed to be constant, A. Economists contend the most economic decisions are, Alex sees that his neighbors' lawns all need mowing. Which of the following lists includes only capital resources (and therefore no labor or land resources)? What is the production possibilities frontier or curve? The optimal allocation of resources is found, Refer to the diagram. Technological advance that improves the ability to produce capital goods but not consumer goods is shown by the shift of the production possibilities curve from AB to, Refer to the diagram. The movement down the production possibilities curve from point A to point E suggests that the production of. Which of the following is an example of a firm trying to increase its human capital? Some neighbors accept Alex's offer and others refuse. The process by which economists test hypotheses against facts to develop theories, principles, and models is called. Refer to the tables. 2. Physical capital. According to economists, "Want" exceeds "Have" because, According to economists, economic self-interest. C. the depletion of its soil fertility due to overplanting and overgrazing. If all discrimination in the United States were eliminated, the economy would. A. production possibilities curve indicating constant opportunity costs. In that regard, your explicit opportunity cost is … A. shift the production possibilities curve from PP1 to PP2. d. the value of lost opportunities varies from person to person. Which of the following would best explain Japan's economic growth despite having a smaller population? B. According to the law of increasing costs, as production shifts from making one item to another, more and more resources are necessary to increase production of the second item. Efficiency is the use of resources to produce the most goods. Most decisions involve changes from the present situation, B. the marginal benefit of the movie exceeds its marginal costs, A. the decision to engage in one activity means forgoing some other activity, The assertion that "there is no free lunch" means that. D. resources are not equally suited for alternative uses. A nation's production possibilities curve is bowed out from the origin because. A. rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants. b. the law of comparative advantage is working. C. can produce more of both consumer goods and capital goods by using resources that are currently idle. A) an increasing opportunity cost between the two goods. This is a reflection of, If someone produced too little of a good, this would suggest that. C. Is a possible explanation of cause and effect. What line on a production possibilities curve shows the amounts of goods produced? In economics, the pleasure, happiness, or satisfaction received from a product is called, When economists say that people act rationally in their self-interest, they mean that individuals, A. The law of increasing opportunity costs states that as production of a product increases, the cost to produce an additional unit of that product increases as well. States that as more of a good is produced, its opportunity cost increases c. Implies that the more resources the economy uses, the greater their cost Implies that the more of good X that is produced, the more costly are the resources. The opportunity cost of growing strawberries will increase. Camille is at the candy store with Grandma Mary, who offers to buy her $6 worth of candy. Human-made objects used to create other goods and services are physical capital. The town of Riverton makes many tires. Specifically, if it raises production of one product, the opportunity cost of making the next unit rises. The law of increasing opportunity costs assumes that all people have the same ability to produce goods. Which of the following statements, if any, is correct for a nation that is producing only consumer and capital goods? B. may or may not be free to individuals but are never free to society. Provide an example of thinking at the margin? Refer to the diagram. If the output of product X is such that marginal benefit equals marginal cost. 39.What does it mean to be operating INSIDE, OUTSIDE, or ON the PPF ? The law of increasing opportunity cost is a concept that is often employed in business and economic circles. Let's say you own a landscaping company and you add several brand-new lawn mowers to your business for $3,000. He says, "At least I didn't lose any money on my financial investment." B. specializing and engaging in international trade. This fact. A. move the level of actual output closer to the economy's production possibilities curve. The concept was first developed by an Austrian economist, Wieser. This economy will experience unemployment if it produces at point. Therefore, the opportunity cost increases. increases in wages cause increases in the costs of production. We can conclude that. Joe sold gold coins for $1,000 that he bought a year ago for $1,000. The production possibilities curve illustrates the basic principle that. Why does this happen? Economists would describe Alex's behavior as. Refer to the tables. The basic difference between consumer goods and capital goods is that. Question: According To The Law Of Increasing Opportunity Cost, A. When an economy uses fewer production resources than it would at maximum production, it is called _______. D) Greater production leads to greater inefficiency. The combination of computers and bicycles shown by point G is. All possible combination of two goods that can be purchased, given money income and the prices of the goods. c.) along a production possibilities curve, increases in the production of one good … A. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so. A. society would consider additional units of shoes to be more valuable than alternative uses of those resources. Normative statements are concerned primarily with, A positive statement is concerned primarily with, "Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." Law of increasing opportunity cost 38.What is meant by the law of increasing opportunity cost? The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase. What is the reason for the law of increasing opportunity costs… The night out with your friends that you miss because you can't afford it now. Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. Which of the following will shift the production possibilities curve to the right? Assume an economy is incurring unemployment. Which of the following is an example of changing physical capital? If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost, Refer to the diagram. The More One Is Willing To Pay For Resources, The Smaller Will Be The Possible Level Of Production. Which of the following is a positive statement? Physical capital refers to human-made items used to make other goods.saws and drills. costs of production increases and then decreases. Which of the following people is an entrepreneur? Opportunity cost exists because: a. technology is fixed at any point in time. Refer to the budget line shown in the diagram. Which of the following would not be classified as an economic resource by economists? Starting at point A, the opportunity cost of producing each successive unit of tractors is, Refer to the diagram. In which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza? The construction of a production possibilities curve assumes, A typical concave (bowed out from the origin) production possibilities curve implies. He offers to provide the service in exchange for a wage of $20 per hour. Investopedia defines opportunity cost as the cost of an action not taken in order to pursue a particular course of action. Assume that pizza is measured in slices and beer in pints. An artist who runs a business painting murals. If the economy is producing at production alternative C, the opportunity cost of the 10th unit of consumer goods will be, Refer to the table. Points A, B, C, D, and E show. Which of the following statements pertains to macroeconomics? Starting at point E, the production of successive units of bread will cost. If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that. C. the maximum amounts of two goods that can be produced, assuming the full use of available resources. B. the production possibilities curves of such nations have shifted inward. Economists and politicians use the term "guns or butter" to describe a country's choice of spending money on military or domestic needs. Refer to the table. Refer to the diagram. D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. Refer to the tables. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia. The need to make choices because economic wants exceed economic means, The economizing problem is one of deciding how to make the best use of, B. limited resources o satisfy virtually unlimited wants, B. Which of the following terms implies the LEAST degree of confidence in an economic generalization? B. If the production possibilities curve is a straight line, B. economic resources are perfectly substitutable between the production of the two goods, A production possibilities curve illustrates. The output of digital music players should be. D. Herbania is technologically superior to Duckistan in producing civilian goods. c is the same along both curves. For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods, it must. Through specialization and international trade, a nation. Technological advance in producing both capital goods and consumer goods is shown by the shift of the production possibilities curve from AB to, Refer to the diagram. A(n) ______ is a visual way of examining opportunity costs. D. a technological advance that allows farmers to produce more output from given inputs. C. 1/8, 1/6, 1/4, and 1/2 units of tractors. The production possibilities curve tells us. B. produce at some point closer to its production possibilities curve. B. the sum of the costs of producing a particular good cannot rise above the current market price of that good. A.Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole. A well-tested economic theory is often called. B) a decreasing opportunity cost between the two goods. Resources used to produce them are limited. C. are generalizations based on hypotheses tested and supported with observed facts. Refer to the diagram. The law of increasing opportunity costs states that A. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so. B. Persists because economic wants exceeds available resources, The alternative combination of two goods that a consumer can purchase with a specific money income is shown by. Technological advance that is useful in producing consumer goods but not in producing capital goods is shown by the shift of the production possibilities curve from AB to, 171. 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