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This question is about graph A. If Turkana's economy moves from point D to point C that will allow this economy
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to produce more toys and the same number of machines.
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The central question of economics is how to
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make the best use of scarce resources.
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This question is about graph A. As Turkana's economy moves from A to G along the production possibilities curve
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the opportunity cost of building machines will increase.
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As an economic resource labor refers to
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human strength or dexterity and the human intellect and ingenuity that can be used in the production process.
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This question is about graph A. Point D represents
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the existence of unemployed resources.
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This question is about graph A. If Turkana's economy is operating at point G what must be done in order to produce some toys?
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To produce some toys Turkana has to cutback on the production of machines and re-allocate some of its resources to toy production.
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All of the following are examples of land (natural resources) except:
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a title to land ownership.
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Which of the following is the best example of an investment?
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Matilda purchased a new equipment for her firm.
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The term allocative efficiency refers to a condition in the economy where the resources are being used
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in the areas that they are most productive or best suited for
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In economics it is assumed that people are rational. To be rational an economic actor must make sure that
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the benefit derived from a choice exceeds the opportunity cost.
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To economists efficiency is
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the absence of waste.
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The term economic efficiency refers to a condition in the economy where products
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are produced at the lowest cost possible.
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Economic resources also known as inputs or the factors of production include all the following except
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money.
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The concept of "productivity" refers to
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the ratio of output to inputs (output/inputs).
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Adam Smith's concept of the "invisible hand" refers to
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the competition in the marketplace.
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This question is about graph A. The economic law that underpins Turkana's, or any other country's, production possibilities is known as
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the law of increasing cost.
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All of the following are examples of labor except:
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a retired teacher.
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Sue purchased a ticket to a Beyonce concert for $50. On the day of the concert she is offered $100 for her ticket by David who would like to go to the concert but does not have a ticket. Sue's opportunity cost of attending the concert is:
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$100.
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This question is about graph A. Given the current market prices what is the optimum point of production (the best combination of toys and machines being produced)?
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Point E.
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In most situations
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the opportunity cost is greater than the monetary cost.
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What determines the cost of the resources?
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their level of scarcity.
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This question is about graph A. Assume that Turkana's economy moves from point B to point C on the production possibilities curve. This move will involve
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gaining 170 machines at the cost of 2,000 toys.
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This question is about graph A. What is the opportunity cost if Turkana's economy is operating at point A?
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500 machines.
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We can confidently say that
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while the concept of shortage is related to the concept of scarcity they are two different concepts and refer to two different economic realities.
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This question is about graph A. At which point on graph A will Turkana's economy experience the most amount of economic growth over time?
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point G.
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This question is about graph A. Given the current market prices the move from point A to point B will lead to
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a net gain of $76,000.
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Every economic decision involves a trade off due to
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scarcity.
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Scarcity means that
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resources are limited or finite.
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If a resource is not limited
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it will be free.
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This question is about graph A. At current prices the move from point G to point F will cause
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a net gain of $9,000.
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Opportunity cost is best defined as the value of
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the next best alternative that the choice forces the decision maker to give up or sacrifice.
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On a Sunday afternoon David was confronted with the following dilemma: he could go to a Chiefs' game at a discounted price of $50 or he could go to a Royals' game using a ticket he got for free that is not transferable (nobody but David can use the ticket). On all other Sundays David would pay $80 to see Chiefs play. He chose to go to the Royals game since he did not want to waste the free ticket. His opportunity cost is:
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$30.
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All of the following are examples of capital except:
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stocks and bonds.
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The old saying: "You cannot have your cake and eat it too" demonstrates a fundamental economic principle. Which of the following principles does the saying refer to?
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Opportunity cost.
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Capital is
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the non-human productive capacity.
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