Micro U1 Review

The concept where society has unlimited wants and limited resources is known as

Which of following are factors of production?

• Land

• Capital

• Money

• Labor

• Entrepreneur

The graphically representations of opportunity cost between two goods is known as

Which points would be considered efficient?

• Point N

• Point M

• Point S

• Point R

Which points on the graph are underutilized?

• Point N

• Point J

• Point S

• Point R

How can an economy reach point M?

• Increasing productivity

• Trade

• Letting go employees

• Paying more for resources

_______________ Advantage is when one country has the lower opportunity cost when producing one good or service.

____________ Advantage is when a country has no reason to trade because they are producing the most of one good or service.

Which country has the absolute advantage in producing cars?

• Cuba

• Mexico

Which country has the comparative advantage in sugar?

• Cuba

• Mexico