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118.
Refer to Figure 1.8. If the university decides to lower grading standards, then
119.
In Figure 1.9, as you move up the curve from point J toward point M, the slope
120.
In Figure 1.9, the slope of the line between points L and M is
121.
In Figure 1.9, the slope of the line between points K and L is
122.
In Figure 1.9 the slope of the line is
123. The slope of a curve at any point is given by this formula:
A. The change in y coordinates between two points divided by the change in their x coordinates.
124. A line that slopes downward from left to right has a
125. A linear function can be distinguished by
126. When the relationship between two variables changes,
127. The fact that there are too few resources to satisfy all our wants is attributed to
128. According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production.
129. In using a guns and butter production possibilities curve with increasing opportunity cost, producing more
and more tanks
A. Lowers the cost of each individual tank.
130. Producing at a point inside the production possibilities curve
131. Greater regulation to correct the imbalances in the economy, as well government intervention to maintain
full employment, was associated primarily with the work of
A. John Maynard Keynes.
132. The book Wealth of Nations was written by
133. Scarcity results when available resources cannot satisfy all desired uses of those resources.
134.
135. Opportunity cost is a theoretical concept with no practical application.
136. Every time we use scarce resources in one way, we give up the opportunity to use them in other ways.
137.
138. All output combinations that lie outside a production possibilities curve are attainable with available resources
and technology.
FALSE
139. Output combinations that lie inside the production possibilities curve are characterized by efficient use of
resources.
140. If the economy is inside the production possibilities curve, then more output can be produced using existing
resources.
141. All economies must make decisions concerning what to produce, how to produce it, and for whom to produce.
142. The essential feature of the market mechanism is the price signal.
143. Government failure occurs when government intervention fails to improve economic outcomes or makes them
worse.
144. Microeconomics is concerned with individual performance as well as the economy as a whole.
145. The Latin phrase ceteris paribus refers to holding other variables constant.
146. To calculate the slope of a line, find the vertical distance between two points and divide it by the horizontal
distance between the same two points.
147. The slope of a production possibilities curve is positive.
149. When a curve shifts, the underlying relationship between the two variables has changed.
149. Explain why an economist would say, "There is no such thing as a free lunch."
150. Describe the shape of the typical production possibilities curve and explain why it has this shape.
151. Why do opportunity costs increase as society produces more of a good?
152. Explain the concept of inefficiency in terms of a production possibilities curve.
153. Explain the difference between macroeconomics and microeconomics. Give examples of each.
154. How does the market mechanism answer the WHAT, HOW, and FOR WHOM questions?
