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10 Cards in this Set
- Front
- Back
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Recessions are periods when |
output and employment are falling |
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The concept of scarcity stems from the fact that |
resources are limited |
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The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that |
equality revers to even distribution of those benefits and efficiency refers to maximizing benefits from scarce resources |
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College-age athletes who drop out of college to play professional sports |
are well aware that their opportunity cost of attending college is very high |
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The "invisible hand" directs economic activity through |
prices |
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Refer to figure. If this economy devotes all of it's resources to the production of toothbrushes, then it will produce |
70 toothbrushes and 0 toasters |
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A reason why this economy cannot currently produce combination C is because |
given its current technology, it does not have the resources to produce that level ofoutput |
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Which of the following events would explain the shift of the production possibilities frontier from A to B? |
The economy experienced a technological advance in the production of batteries |
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Trade between countries |
allows each country to consume at a point outside its production possibilities frontier |
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Assume that England and Spain can switch between producing cheese and bread at a constant rate. The opportunity cost of 1 unit of cheese for England is |
1/4 unit of bread |
