397)
What is the difference between comparative advantage and absolute advantage?
398)
Explain the difference between human needs and wants.
399)
Explain how comparative advantage, specialization and division of labor are related.
400)
“Because resources are scarce, the production of more capital goods means that fewer resources are available to
produce consumption goods, so there is less current consumption.” Do you agree or disagree? Explain.
401)
Explain briefly what will likely happen to society if it chooses to produce more capital goods and fewer
consumption goods.
402)
What causes the production possibility curve to be bowed out?
403)
Labor, human capital, and entrepreneurship are resources related to human beings. Distinguish among the
three resources.
404)
Briefly explain the factors of production and give an example of each.
405)
Explain what will happen to the production possibilities curve over time if society gives up some consumption
goods in favor of more capital goods.
406)
Suppose that nuclear power plants are banned. What are examples of the opportunity costs of this decision?
407)
Why is a point below the production possibilities curve less efficient than a point on that curve?
408)
What does a production possibilities curve show?
409)
Explain what is meant by economic efficiency. Does efficiency imply that the fastest production processes or the
most powerful equipment must always be used? Explain.
410)
Briefly explain the concept of opportunity cost. What is the opportunity cost of attending college?
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