Microeconomics Chapter 2- EMCC - Assignment Essays %

question

self sufficiency

answer

yields a very low standard of living

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beneficial

answer

A trade is __ to a person when that person values what is received in the trade more than what is given up

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consumer's surplus

answer

The difference between the highest price a buyer is willing to pay and the price actually paid is

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producer's surplus

answer

The difference between the lowest price a seller is willing to accept and the price actually received is

question

externality

answer

A benefit or a cost of an activity that affects third parties is an

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external benefit

answer

Ned hires Barney to landscape Ned's front yard. The new landscaping increases the value of Ned's house and also increases the value of Homer's house next door. This is an example of:

question

production possibilities frontier

answer

The maximum combinations of two goods that an economy can produce is represented on:

question

downward sloping, bowed outward

answer

A PPF will be ___ because of the inverse relationship between the two goods
and
___ because of the law of increasing opportunity cost

question

increase, resources

answer

As production of a good increases, the opportunity cost of producing the good will ___ and ___ that are less well suited for producing the good will have to be used

question

maximum

answer

When an economy is operating efficiently, it is producing the ___ output with the available resources and technology

question

economic growth

answer

An outward shift of the production possibilities frontier is an indication of

question

private property leads to the efficient use of resources

answer

According to the capitalist vision:

question

the capitalist vision

answer

-private ownership of resources
-market determination of prices
-limited government

question

the socialist vision

answer

-government ownership of resources
-government control of prices
-a large and strong government

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the distribution of income

answer

In a market economy, the question of "for whom to produce" is determined primarily by:

question

least cost

answer

To produce as much consumer satisfaction as possible with the limited resources available, all goods should be produced by the ___ method of production that will satisfy consumer demand

1 of 16

question

self sufficiency

answer

yields a very low standard of living

question

beneficial

answer

A trade is __ to a person when that person values what is received in the trade more than what is given up

question

consumer's surplus

answer

The difference between the highest price a buyer is willing to pay and the price actually paid is

question

producer's surplus

answer

The difference between the lowest price a seller is willing to accept and the price actually received is

question

externality

answer

A benefit or a cost of an activity that affects third parties is an

question

external benefit

answer

Ned hires Barney to landscape Ned's front yard. The new landscaping increases the value of Ned's house and also increases the value of Homer's house next door. This is an example of:

question

production possibilities frontier

answer

The maximum combinations of two goods that an economy can produce is represented on:

question

downward sloping, bowed outward

answer

A PPF will be ___ because of the inverse relationship between the two goods
and
___ because of the law of increasing opportunity cost

question

increase, resources

answer

As production of a good increases, the opportunity cost of producing the good will ___ and ___ that are less well suited for producing the good will have to be used

question

maximum

answer

When an economy is operating efficiently, it is producing the ___ output with the available resources and technology

question

economic growth

answer

An outward shift of the production possibilities frontier is an indication of

question

private property leads to the efficient use of resources

answer

According to the capitalist vision:

question

the capitalist vision

answer

-private ownership of resources
-market determination of prices
-limited government

question

the socialist vision

answer

-government ownership of resources
-government control of prices
-a large and strong government

question

the distribution of income

answer

In a market economy, the question of "for whom to produce" is determined primarily by:

question

least cost

answer

To produce as much consumer satisfaction as possible with the limited resources available, all goods should be produced by the ___ method of production that will satisfy consumer demand

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