The expression that time is money reflects which economic concept
a) Specialization
b) Absolute advantage
c) Comparative disadvantage
d) Opportunity cost
In the simple circular flow model, the government ______.
a) Influences both the input and output markets through taxes and regulations
b) Only siphons out income from the model through taxes
c) Increases the amount of income in the economy
d) Has little influence over the markets
A person has a comparative advantage in an activity whenever she
A. can perform the activity at a lower opportunity cost than can another person
B. has an absolute advantage in the activity
C. can do everything better than anyone else
D. can do the activity in less time than anyone else
Technology is defined as ______.
a) The utilization of the most advanced machinery
b) Output beyond the production possibilities frontier
c) the maximum output that can be attained from a stock of physical capital
d) possible techniques of production
With specialization of resources, ________.
a) the slope of the PPF is decreasing as more of the good on the X-axis is produced
b) marginal opportunity costs increase
c) opportunity costs tend to be constant
d) there is more emphasis on self reliance
A waitress brings you a glass of water as you sit down at a restaurant. The glass of water is
a) a good, but not an economic good since there was no price charged for the water
b) a service because the waitress carried it instead of making it
c) an economic good because fresh water is produced with scarce resources
d) a free good because there was no price charged for the water
Production is technologically efficient when ________.
a) It generates a point beyond the production possibilities frontier
b) The maximum output possible given the amounts of resources and technology is reached
c) The maximum amounts of resources are used
d) Technological change occurs
If a country has __________ in the production of an item, it can produce __________ of the item (for a given quantity of resources) than can other nations
a) a special advantage; more
b) an absolute advantage; more
c) a comparative advantage; more
d) a mutual gain; the same amount