MICROECONOMICS - CHAPTER 2
WITH ACCURATE ANSWERS
GRADED A+ (BRAND NEW)
scarcity - answer-unlimited wants exceed the limited resources available to fulfill those
wants. Leads to *trade-offs*
opportunity cost - answer-highest valued alternative that must be given up to engage in
an activity
production possibilities frontier - answer-curve showing the maximum attainable
combinations of two products produced with current tech and resources
production possibilities frontier curve points - answer-X -inefficient, not all resources
being used
Y - unattainable, not enough resources
B - efficient, produce both
production possibilities frontier straight points - answer-opportunity cost is constant,
(1:2 ratio)
increasing marginal opportunity costs (PFF) - answer-the more resources already
devoted to an activity, the smaller the payoff to devoting additional resources to that
activity. Some resources better suited to one task than another.
economic growth - answer-ability of economy to increase production of goods and
services
technological change in industry - answer-can affect only side, but increase the number
of both products by using fewer resources
WITH ACCURATE ANSWERS
GRADED A+ (BRAND NEW)
scarcity - answer-unlimited wants exceed the limited resources available to fulfill those
wants. Leads to *trade-offs*
opportunity cost - answer-highest valued alternative that must be given up to engage in
an activity
production possibilities frontier - answer-curve showing the maximum attainable
combinations of two products produced with current tech and resources
production possibilities frontier curve points - answer-X -inefficient, not all resources
being used
Y - unattainable, not enough resources
B - efficient, produce both
production possibilities frontier straight points - answer-opportunity cost is constant,
(1:2 ratio)
increasing marginal opportunity costs (PFF) - answer-the more resources already
devoted to an activity, the smaller the payoff to devoting additional resources to that
activity. Some resources better suited to one task than another.
economic growth - answer-ability of economy to increase production of goods and
services
technological change in industry - answer-can affect only side, but increase the number
of both products by using fewer resources
