Chapter 2 Question 1: What do economists mean by scarcity? Economists mean that unlimited wants exceed limited resources. Economists mean that trade is not possible. Economists mean that people are not employed. Economists mean that production is inefficient. Economists mean that economy is unable to produce increasing quantities of goods and services What of the following is not scarce according to the economic definition? Coal Time Food Capital None of the above Chapter 2 Question 2: A production possibilities frontier: Shows the market for a good or service Shows how unlimited wants exceed the limited resources available to fulfill those wants Shows how participants in the market are linked Shows the maximum attainable combinations of two goods that may be produced with available resources. We can show economic efficiency: With points inside the production possibilities frontier With points on the production possibilities frontier With points inside and on the produ...
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