TM - Chapter 2 Prediction Exam Questions Correctly Answered.

TM - Chapter 2 Prediction Exam Questions Correctly Answered. When the production possibilities frontier is concave, - CORRECT ANSWER opportunity costs are increasing. The ______________ cost of one good is the amount of the other good that must be given up to produce it. - CORRECT ANSWER opportunity The two main factors that drive the change in U.S. production possibilities are - CORRECT ANSWER changes in technology / the number of workers Positive changes in comparative advantage often - CORRECT ANSWER result in economic growth If a producer can generate more output than others with a given amount of resources, that producer has a(n) ___________ advantage. - CORRECT ANSWER absolute The production possibilities frontier helps us answer the second economists' question - "What are the trade-offs?" - because - CORRECT ANSWER there is a trade-off between the production of the two goods. The production possibilities frontier gives us a way to represent the ____________ of production. - CORRECT ANSWER constraints If a country can make a good at a lower opportunity cost than another country, that country has a(n) __________ advantage. - CORRECT ANSWER comparative In the nineteenth century, the United States snatched the comparative advantage in clothing - CORRECT ANSWER through a combination of new technology and cheap labor.