_____________ –  a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.   Skill Specialization Economies of scale Division of labor

Exhibit 2-1 Refer to Exhibit 2-1. The opportunity cost of moving from point B to A is

Goods/services made abroad and sold domestically.A. ImportsB. ExportsC. Market economyD. Division of labor

Exhibit 2-2 Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ is unattainable.

Why is there scarcity? Because the opportunity set determines this. Because theory dictates it. Because our unlimited wants exceed our limited resources Because human wants are limited.

The lesson of __________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options. sunk costs opportunity costs marginal analysis budget constraints  

As a person receives more of a good, the _______________ from each additional unit of the good declines. utility sunk costs marginal utility budget constraint

The opportunity cost of attending university is likely to include all except which of the following? the cost of haircuts received during the school term the income you forgo in order to attend classes tuition fees the cost of required textbooks  

Interaction of potential buyers and sellers (demand & supply).A. MarketB. Fiscal policyC. GlobalizationD. Imports

Which of the following best describes a monetary policy tool?   interest rates taxes household savings government spending