Podcast
Questions and Answers
Which of the following statements accurately describes an economy's production possibilities?
Which of the following statements accurately describes an economy's production possibilities?
- An economy can produce only on the production possibilities frontier.
- An economy can produce at any point inside or outside a production possibilities frontier.
- An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier. (correct)
- An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.
In economics, what is the opportunity cost to Toyland of increasing the production of fire trucks from 200 to 350, as per Table 1?
In economics, what is the opportunity cost to Toyland of increasing the production of fire trucks from 200 to 350, as per Table 1?
- 200 dolls
- 300 dolls (correct)
- 100 dolls
- 50 dolls
What do economists consider positive statements to be?
What do economists consider positive statements to be?
- Descriptive, making a claim about how the world is (correct)
- Affirmative, justifying existing economic policy
- Prescriptive, making a claim about how the world ought to be
- Optimistic, putting the best possible interpretation on things
Based on Figure 2, what points can the economy produce at?
Based on Figure 2, what points can the economy produce at?
What is considered the primary determinant of a country's standard of living?
What is considered the primary determinant of a country's standard of living?
In economics, what is meant by the cost of something?
In economics, what is meant by the cost of something?
What is the opportunity cost of Mallory working overtime rather than watching a video with her friends?
What is the opportunity cost of Mallory working overtime rather than watching a video with her friends?
In a market economy, what guides economic activity?
In a market economy, what guides economic activity?
What does a point on a country's production possibilities frontier represent?
What does a point on a country's production possibilities frontier represent?
What happens when scientists make good assumptions?
What happens when scientists make good assumptions?
In the simple circular-flow diagram, who are the decision makers?
In the simple circular-flow diagram, who are the decision makers?
When is an economic outcome said to be efficient?
When is an economic outcome said to be efficient?
