Exhibit 2-1 Refer to Exhibit 2-1. The opportunity cost of moving from point B to A is

Macroeconomic topics do not usually include:   the profit maximizing decisions of an individual manufacturer. the rate of inflation. the rate of unemployment. economic growth.

Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good. utility marginal analysis the budget constraint consumption

In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.   division of labor interconnected economy task economy modern economy

Most real-world choices aren’t about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good. utility opportunity cost benefit analysis marginal analysis

In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income. budget constraint opportunity set utility production possibilities frontier

Domestically produced goods/services sold abroad.A. ImportsB. ExportsC. MarketD. GDP

Focusing on tasks one is relatively well-suited to.A. SpecializationB. Division of laborC. MarketD. Fiscal policy

Government spending and taxes.A. Fiscal policyB. Monetary policyC. Private enterpriseD. Traditional economy

Exhibit 2-4 Refer to Exhibit 2-4. As more fax machines are produced, the opportunity cost of producing them