Scarcity, choice and resource allocation: แบบฝึกหัด

• a.Opportunity cost, because to produce more of one good, some of another good must be sacrificed.
• b.Allocative efficiency, because the economy is producing what consumers want.
• c.Economic growth, because the productive capacity of the economy is increasing.
• d.Unemployment, because the economy is producing at a point inside the curve.

• a.The central economic problem of scarcity is permanently solved.
• b.The economy experiences an increase in its productive capacity.
• c.The opportunity cost of increasing production remains zero throughout the move.
• d.The economy achieves productive efficiency and utilizes its unemployed resources.

• a.

  An improvement in business confidence that leads firms to use their existing machinery more intensively.

• b.

  An influx of skilled foreign workers that increases the quantity and quality of the labour force.

• c.

  A successful government policy that retrains unemployed workers and places them into vacancies.

• d.

  The discovery of inefficient allocation of raw materials across different manufacturing sectors.

• a.The central problem is primarily about how to ensure full employment of the labor force.
• b.Scarcity exists only in developing economies where there is a lack of advanced technology.
• c.Economic agents face scarcity because governments fail to allocate resources equitably.
• d.Scarcity arises because human wants are unlimited while resources available to satisfy them are finite.

• a.

  A parallel outward shift of the entire PPC, indicating an increase in the productive capacity for both goods.

• b.

  The PPC shifts inwards because resources are diverted away from Consumer Goods to adopt the new technology.

• c.

  The intercept on the Capital Goods axis shifts outwards while the intercept on the Consumer Goods axis remains unchanged.

• d.

  A movement along the existing PPC towards a point that represents more Capital Goods production.

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