Chapter 2 Flashcards
1
Q
Candace can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures. If she now performs 35 manicures and 70 pedicures, what is the opportunity cost of performing an additional 15 manicures?
A
25 pedicures
2
Q
The circular-flow diagram
A
represents in inputs and outputs of households and firms
3
Q
Another term for factors of production is
A
inputs.
4
Q
In economics, capital refers to
A
buildings and machines used in the production process.
5
Q
The production possibilities frontier is a graph that shows the various combinations of output that an economy
A
can produce.
6
Q
An outward shift of a nation’s production possibilities frontier can occur due to
A
an increase in the labor force.
