Possibility A Economics History I 94 76 II 87 84 III 77 91   A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student’s time. The opportunity cost of scoring an 84 on the history exam rather than 76 is: 10 points on the economics exam 8 points on the history exam 7 points on the economics exam 12 points on the economics exam  

Exhibit 2-5 Refer to Exhibit 2-5. As more fax machines are produced, the opportunity cost of producing them

Plastic composite oil pans are generally replaced, not repaired.

Exhibit 2-6 Refer to Exhibit 2-6. Which graph depicts a technological breakthrough in the production of good Y only?

Production possibilities curves can shift outward but they do not shift inward.

Scarcity implies that: consumers would be willing to purchase the same quantity of a good at a higher price. it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available. at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce. consumers are too poor to afford the goods and services available.    

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